Brazil unveils new housing credit model, freeing up $6.7 billion for new loans

BRASILIA (Reuters) -Brazil's government on Friday announced a new real estate funding framework that loosens rules on the mandatory allocation of bank resources to the sector, releasing 36.9 billion reais ($6.72 billion) for them to boost housing loans. The changes are based on easing the use of savings accounts as the main source of housing credit in Latin America's largest economy. Although exempt from income tax, savings accounts offer returns well below the benchmark interest rate, leading to signifi ...