Banks in Brazil are fairly conservative. In fact, even in Brazil’s worst downturn, actual mortgage default rates remain relatively low. Banks’ credit decisions come at the end of the construction process when the bank actually receives the title of the property. A key issue during the boom was that developers accepted buyers at the beginning of the process who the banks would later not accept for a loan. With the significant pain developers faced based on this gap in credit evaluation, smart developers will not make the same mistake again.