Core Insights - Brazil's government has introduced a new real estate funding framework aimed at increasing housing loans by releasing 36.9 billion reais ($6.72 billion) from bank resources [1][3] Group 1: Changes in Funding Framework - The new model allows banks to use savings account funds without mandatory allocation to specific sectors, easing the previous restrictions [2][4] - The central bank anticipates that this overhaul will unlock 111 billion reais in new loans in the first year, significantly higher than the current framework [3] Group 2: Impact on Housing Loans - Until the end of next year, banks are required to allocate 65% of savings deposits to housing loans, with 15% available for free use [4] - The government expects that the new flexibility will enhance banks' profitability and lead to lower rates on housing loans funded through alternative sources [5] Group 3: Regulatory Adjustments - From 2027, banks that secure market funding for housing loans will be able to use an equivalent amount from savings accounts for free allocation [4] - Under the new rules, 80% of housing loans must adhere to the Housing Finance System, which caps interest rates at 12% annually [5]