Earthquake decree package lets banks issue repair mortgages without down payments for 12 months
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What happened
The government included in its earthquake emergency decree package a 12-month rule that permits lenders to grant housing loans for repair or reconstruction without requiring a borrower down payment or an existing mortgage, if other guarantees or public risk-coverage mechanisms are accepted.
Why it matters
The rule changes underwriting conditions for post-disaster housing credit and can increase loan origination in affected areas within days. It also changes the distribution of risk among banks, guarantee providers, insurers, and the state if public coverage is used.
Colombia's new earthquake decree package, highlighted today, includes a temporary housing-credit rule allowing lenders to finance repair or reconstruction without a down payment and without a prior mortgage, provided there are acceptable guarantees or state-backed risk coverage. The measure applies for 12 months and is designed to speed the return of damaged housing stock to use after the disaster. For finance authorities, the change shifts part of the credit-loss risk from household collateral toward guarantee structures and potential public backing.
Watch for
Ministerio de Hacienda publication of the decree text or implementing circular specifying eligible state-backed guarantees by 2026-09-19 Superintendencia Financiera de Colombia guidance on provisioning, collateral treatment, or reporting for these loans by 2026-09-20 Fondo Nacional de Garantías or another public guarantee vehicle announcement of coverage terms, caps, or issuer eligibility by 2026-09-20 Asobancaria acknowledgement that member banks have opened this loan line in affected municipalities by 2026-09-21
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