Housing finance as an industry had its fair share of controversies. If one looks at the root cause of the NBFC crisis, it is clear, it was housing finance companies which were at the centre of the crisis. If one looks globally also, either directly or indirectly, they have been at the root of a financial crisis or a scam. One of the reasons why this sector carries such risk is that the underlying asset, which is real estate itself, is both cyclical and non-transparent. Despite all the ills, one of the biggest wealth creators in the history of the Indian stock market has been a housing finance company, erstwhile HDFC which now merged with HDFC bank. So, while they must have a portfolio, what you own is more important.
