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1
Waliszewski, Krzysztof. "Requirements for Intermediaries and Advisors in the Area of Mortgages Resulting from Mortgage Credit Directive– Implications for Poland." e-Finanse 11, no. 2 (June 1, 2015): 18–31. http://dx.doi.org/10.1515/fiqf-2016-0112.
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Abstract The dynamic development of the mortgage market, especially in the period before the current financial crisis, revealed that within the EU there are local mortgage credit markets and that it is necessary to harmonize the rules of the system and consumer protection within the Community. The intention of the creators of the Mortgage Credit Directive was to organize the mortgage lending market for residential purposes and make it transparent, as well as increase the safety of the consumer credit market, along the lines of what took place earlier in the consumer credit market regulations (The Consumer Credit Directives no. 2008/48/EC and earlier no. 87/102/EEC). The Mortgage Credit Directive implies for lenders - credit institutions to act at every stage of the lending process with respect to the consumer’s interest and to provide them with adequate services for their needs. Due to the large role of indirect distribution channels of mortgages by banks there are certain requirements for intermediaries, brokers and credit advisors. The implementation term of the Directive, appointed for March 2016, implies action to be taken in order to implement the provisions of this Directive into Polish law. The legislative process is being conducted by the Ministry of Finance and supported by the Group on implementation of the Mortgage Credit Directive operating with the Council of Financial Market Development.
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Starykh , S. A., S. A. Lavoshnikova , and A. D. Chesnokova. "MORTGAGE LENDING MARKET IN THE RUSSIAN FEDERATION: CURRENT STATE, PROBLEMS AND PROSPECTS." Region: systems, economy, management 2, no. 53 (2021): 72–78. http://dx.doi.org/10.22394/1997-4469-2021-53-2-72-78.
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Subject. The market of mortgage housing lending in the Russian Federation. Topic. The impact of the coronavirus pandemic on the mortgage lending market. Purpose. Analyze the housing mortgage lending market in the Russian Federation and identify the reasons for its explosive growth in the 3rd and 4th quarters of 2020. Methodology. Methods of comparative analysis of the housing mortgage lending market in the Russian Federation. Results. The possibility of the formation of a financial bubble in the real estate market in Russia is studied, and the probable prospects for the development of the mortgage market are evaluated Application area. The mortgage lending market, including the behavior of borrowers (buyers in the housing market) and the activities of credit institutions. Conclusions. The article analyzes the housing mortgage lending market in the Russian Federation and identifies the reasons for its explosive growth in the 3rd and 4th quarters of 2020. The article examines the impact of the coronavirus pandemic on the mortgage lending market, including the behavior of borrowers (buyers in the housing market) and the activities of credit institutions. The possibility of the formation of a financial bubble in the real estate market in Russia is studied, and the probable prospects for the development of the mortgage market are evaluated. Keywords: mortgage lending, deferred demand, financial bubble, coronavirus pandemic, mortgage lending rate, key rate, average credit rating of the borrower, overdue debt, bankruptcy, reserves for possible losses.
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Josipović, Tatjana. "Consumer Protection in EU Residential Mortgage Markets: Common EU Rules on Mortgage Credit in the Mortgage Credit Directive." Cambridge Yearbook of European Legal Studies 16 (2014): 223–53. http://dx.doi.org/10.1017/s1528887000002603.
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AbstractFor many years now, there has been an attempt in the European Union to create a common legal framework for mortgage credit contracts and cross-border activities in the mortgage financial sector. One of the greatest challenges has been the establishment of a corresponding level of consumer protection in EU residential mortgage markets. This issue has become particularly important at the time of financial crisis. Consumers are increasingly exposed to the risk of losing their homes because of failing to fulfil, in due time, their obligations arising from mortgage loans, and thus losing confidence in the EU financial sector. Therefore, the European Union has intensified its efforts to improve consumers’ ability to inform themselves of the potential risks when entering into mortgage loans and mortgaging their real property. On 4 February 2014 the EU adopted the new rules on mortgage credits in the Mortgage Credit Directive. The main objective of the Directive is to increase the protection of consumers in EU mortgage markets from the risks of defaults and foreclosures. A higher level of protection must be ensured by consumers’ increased information capacity related to mortgage credits, as well as by developing a responsible mortgage lending practice across the EU. The Mortgage Credit Directive is also aimed at contributing to the gradual establishment of a single internal market for mortgage credits. In this chapter, the author analyses previous and current attempts by the EU to establish a uniform market of mortgage loans, and assesses the possible impact of the Mortgage Credit Directive on the protection of consumers in the market of mortgage credits and on the development of cross-border activities in the mortgage financial sector. Special emphasis is placed on the possible impact of the new EU rules on mortgages on national protection measures aimed at consumer protection at the time of financial crisis. The transposition of the Mortgage Credit Directive will undoubtedly contribute to a higher level of consumer protection when consumers enter into home loan contracts. However, the question arises whether, because of different levels of harmonisation of some rules laid down in the Directive, its implementation will actually contribute to an increase in cross-border home loans. The possibility for Member States to opt for increased consumer protection in some aspects of credit agreements when implementing the Directive, or the existence of different options for the exercise of individual rights that they may use cannot bring about an integration of mortgage credit markets.
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HUI, Eddie C. M., and Ivan M. H. NG. "ACCESS TO MORTGAGE CREDIT AND HOUSING PRICE DYNAMICS." International Journal of Strategic Property Management 20, no. 1 (April 14, 2016): 64–76. http://dx.doi.org/10.3846/1648715x.2015.1103802.
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In real estate studies, arguably the most important topic revolves around what actually affect the price of properties. In addition to various macroeconomic factors, the mortgage industry is also believed to play a major role. Nonetheless, despite its profound implications on the banking sector, the property market, and the economy as a whole, there is no consensus as to the relationship between property price and bank mortgage lending. In light of this, this paper aims to investigate the relationship between property price and mortgage lending, along with other macroeconomic variables, in two housing sub-markets of Hong Kong (i.e. the mass housing market and the luxury housing market). The findings illustrate that one-way directional relationships are discovered 1) from mass housing price to mortgage lending; 2) from luxury housing price to mortgage lending; and 3) from mass housing price to luxury housing price. Macroeconomic factors such as GDP, inflation rate, and interest rate are also found to play a major role in influencing the prices of both property markets and the amount of outstanding mortgage loans. Implications based upon these findings are also discussed.
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Theunissen, Anton. "Securitization, loan modification and the supply of subprime mortgage credit in the US." Risk Governance and Control: Financial Markets and Institutions 3, no. 3 (2013): 149–62. http://dx.doi.org/10.22495/rgcv3i3c1art6.
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This paper develops a continuous time, contingent claims model of mortgage valuation with strategic behavior to show that mortgages that are securitized are characterized by significantly higher loan to value ratios than mortgages held on the balance sheet of the originator, if securitized mortgages cannot be renegotiated. Insofar as securitization inhibits loan modification, it serves as a credible threat to the borrower that default will provoke foreclosure. This enhances the value of the lender’s claim on the loan collateral, the home, and she is willing to lend more per dollar of collateral value. An important implication of the analysis is that the higher loan to value ratio for the securitized mortgage does not imply that the securitized mortgage is characterized by looser underwriting standards than the mortgage held on balance sheet. Higher loan to value ratios for securitized mortgages do not necessarily constitute evidence that securitization encourages risky lending.
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Volkova, Nelia, and Kateryna Khamula. "Mortgage Loan: Assessment of the Current Situation and Impact on the Solution of Housing Problems." ЕКОНОМІКА І РЕГІОН Науковий вісник, no. 3(78) (December 15, 2020): 78–85. http://dx.doi.org/10.26906/eir.2020.3(78).2000.
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The development of the mortgage market solves both the economic problems of activation and efficient use of financial resources, and social problems in attracting social groups to meet their needs through the mechanism of the financial market. This determines the pattern of development of ways to ensure and develop these processes in Ukraine, their theoretical justification, taking into account the peculiarities of the national economy and current global trends in the development of housing mortgage lending. The purpose of the work is to develop theoretical principles, guidelines and practical recommendations for improving the mortgage lending system in Ukraine. To achieve this goal, the following tasks were set: to summarize the theoretical provisions on the essence of mortgage lending; to analyze the current state of mortgage lending in Ukraine; identify conceptual approaches to enhancing the importance of mortgage credit in solving housing problems. The object of study is the process of assessing mortgage lending. The subject of the research is theoretical-methodical and practical aspects of mortgage lending in Ukraine and its impact on solving housing problems of the population. The paper summarizes the theoretical provisions on the essence of mortgage lending as an effective means of transforming capital tied to real estate; thanks to the analysis of the current state of mortgage lending in Ukraine it is proved that it is one of the most mobile segments of the financial market and today real estate lending has intensified and started to grow, but significant mortgage lending as before the crisis, unfortunately, has not yet been achieved; conceptual approaches to strengthening the importance of mortgage credit in solving housing problems, which are to improve the mortgage lending system in Ukraine. The information base of the study consisted of official materials of the National Bank of Ukraine, performance indicators of JSC "State Savings Bank of Ukraine", JSC CB "Globus", PJSC JSCB "Arcade", JSB "Ukrgasbank", materials of scientific conferences, Internet sources. The scientific novelty of this work is to substantiate the theoretical, legal provisions and provide practical recommendations for improving the mortgage lending system in Ukraine.
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Чуканов, Андрей, and Andrey Chukanov. "Justification of Tools for Estimating Regional Mortgage Lending." Scientific Research and Development. Economics 7, no. 3 (July 3, 2019): 57–61. http://dx.doi.org/10.12737/article_5cfdfe1b73ade0.35723914.
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In this article, for the growth of mortgage lending in Russia, a complex coefficient for the development level of mortgage lending was created — the Regional housing affordability ratio. The article considers the regulatory framework of the domestic mortgage, to identify marks-indicators of the mortgage state for targeted programs. The key indicator was identified — the housing affordability ratio used in the Mortgage Development Strategy until 2020, and the absence of a similar indicator in the new priority project Mortgage and Rental Housing was noted. The author studies the advantages and non-delivery of housing affordability factor with the account of the modern scientific base. Based on the adjusted housing affordability coefficient proposed by A. Kulikov and V. Yaninin, a regional housing affordability index was developed together with a methodology for calculating it based on the available statistical data. The possibilities of purchasing housing on credit by the population in different regions were determined, and the possibility of using the coefficient for grouping regions using cluster analysis to identify the uneven development of mortgages in Russia was presented. The proposed coefficient can be used as a mortgage status indicator in the regions, used to create differentiated econometric models of mortgage lending and the development of a mortgage policy that takes into account the peculiarities of Russian regions.
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Ushanov, Aleksandr Evgenievich. "Commercial mortgage lending: standardization issues." Vestnik of Astrakhan State Technical University. Series: Economics 2020, no. 2 (June 30, 2020): 100–106. http://dx.doi.org/10.24143/2073-5537-2020-2-100-106.
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The article states that a loan secured by commercial property (commercial mortgages), as one of the most popular types of corporate loans has a number of advantages compared to other types of borrowing: the borrower is able to quickly get the necessary amount of money for any need - business expansion, working capital, ability to Finance large deals, and the disposal
of banks remains liquid assets, quick sale which will cover damages in case of default by the cus-tomer of the terms of the loan. It is confirmed that the product is characterized by specific risks,
often resulting in refusal of credit or their manifestations in the course of servicing the debt: unac-ceptable for the lender level of capitalization and liquidity of the collateral, the degree of occupan-cy of commercial real estate and the level of indexing of interest rates on leases; rental impropriety of the object for commercial use; encumbrances accept collateral in other liabilities etc. It is noted that one of the ways to improve the process of commercial mortgage lending in order to reduce transaction risks is its standardization. In the Russian Federation, the Association of Russian Banks is developing banking standards, which to date has approved more than fifteen standards (most
of them are banking business process quality standards and methodological documents). It is pro-posed to develop a Standard for the lending process secured by commercial real estate; a matrix
of requirements for the components of this process is provided, reflecting the best practices of leading Russian banks working in the field of commercial mortgages. In using the Standard, stakeholders are both credit institutions and borrowers.
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TADTAEVA, V. V., B. E. BAGAEV, and A. A. DATIEVA. "ANALYSIS OF THE PECULIARITIES OF THE DEVELOPMENT OF MORTGAGE HOUSING LENDING IN THE RUSSIAN FEDERATION AND DEVELOPED FOREIGN COUNTRIES." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 2, no. 5 (2021): 32–37. http://dx.doi.org/10.36871/ek.up.p.r.2021.05.02.006.
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Mortgage lending is one of the key levers in the financial mechanism of the country, contributing to the formation of a stable socio-economic situation of the population. There are many factors that hinder the formation of an effective mortgage lending system. In this case, we should not neglect the practical experience of developed foreign countries, whose credit activities are a powerful element of the financial and credit system.
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Nield, Sarah. "Responsible lending and borrowing: whereto low-cost home ownership?" Legal Studies 30, no. 4 (December 2010): 610–32. http://dx.doi.org/10.1111/j.1748-121x.2010.00165.x.
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The recent experience of the credit crunch has cast doubt on the prudence of regulation of the mortgage market based upon the concepts of responsible lending and borrowing. Both the Turner Review and the Financial Services Authority's follow-up Mortgage Market Review identified irresponsible lending as one of the principle causes of the credit crunch. Yet easy access to mortgage finance has underpinned the growth of owner occupation and the promotion of low-cost home ownership. This paper examines recent regulatory initiatives to articulate responsible lending and borrowing in more concrete terms, which suggests a shift towards greater lender responsibility through affordability checks, clearer product explanation and the possibility of product regulation. Whilst such proposals may assist in the pursuit of a more stable mortgage market, they cast serious doubt on the future sustainability of low-cost home ownership.
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Shkuratov, Oleksii. "THE ROLE OF LAND-MORTGAGE LOANING IN THE INFRASTRUCTURE SUPPORT OF THE AGRICULTURAL LAND MARKET." Economic discourse, no. 2 (June 2020): 46–53. http://dx.doi.org/10.36742/2410-0919-2020-2-5.
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Introduction. The functioning of the agricultural land market under the existing institutional restrictions hinders the development of one of the most common mechanisms for investment support of the agricultural sector of the economy, namely land mortgage lending. However, the lifting of the moratorium on the sale of agricultural land should serve as an impetus for the development of land mortgage lending, as a tool for transforming land resources into financial assets. Methods. The study is formed based on the use of calculation and constructive, experimental, abstract and logical methods, data from the legislative and statistical base, as well as the study of scientific approaches to the development of land mortgage lending in agriculture. Results. The world experience in land mortgage lending is analyzed, which is based on two main models of its functioning system: single-level (mortgage provider ↔ land mortgage bank) and two-level (mortgage provider ↔ bank ↔ land mortgage agency). The role of land mortgage lending in infrastructure support of the agricultural land market is substantiated. The mechanism of interaction of land, financial and credit and stock markets in the system of land mortgage lending for agriculture. The toolkit for refinancing and securitization of mortgage assets in the land-mortgage lending system of agriculture is substantiated. Discussion. Implementation of recommendations on refinancing and securitization of mortgage pools in the securities markets, as components of the financial subsystem of the agricultural land market infrastructure, will ensure the accelerated development of land mortgage lending in Ukraine’s agriculture. Keywords: mortgage, land mortgage lending, agricultural land, market, infrastructure.
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Pihl, Christopher. "‘Learning to bring dead capital to life’: the Riksens Ständers Bank and the credit market in seventeenth-century Sweden." Continuity and Change 34, no. 2 (July 15, 2019): 209–30. http://dx.doi.org/10.1017/s026841601900016x.
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AbstractSuccessful mortgage lending is often said to require a system of registration, which records the ownership of, and any encumbrances on, a particular piece of real estate. Here we analyse how Sweden's Riksens Ständers Bank handled the uncertainties of the mortgage lending market c. 1680–1700, when there was no coherent system of property registration. The bank tried to make registration compulsory, but when influential groups opposed this move, the bank had to modify its lending practices. The study thus sheds light on the somewhat fraught initial stages of the shifts in the credit system, which from the latter half of the seventeenth century onwards, saw personal trust replaced by system trust, and private credit replaced by institutional credit.
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Ushakov, Denis, Diana Stepanova, and Mariia Ermilova. "Possible usage of foreign practice of mortgage lending in Russia." E3S Web of Conferences 164 (2020): 09004. http://dx.doi.org/10.1051/e3sconf/202016409004.
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The article compares the mechanisms of mortgage lending in Russia and abroad, examines how the methods of German mortgage lending can be applied in Russian practice. The possibility of using the German credit product “Bausparsumme” in Russia and its impact on the riskiness and profit of Russian banks are investigated. the aim of this work is to compare mortgage lending in Russia and abroad and to examine how the methods of the German mortage lending can be transferred to Russian, in particular its vital to investigate the impact of such product on the riskiness and profit of Russian banks.
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Staff, Natalie. "Consumer Protection in Mortgage Lending." European Journal of Comparative Law and Governance 3, no. 4 (November 24, 2016): 385–454. http://dx.doi.org/10.1163/22134514-00304001.
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For different reasons, such as the financial crisis of 2007, the eu has adopted a directive with the purpose of harmonising consumer mortgage lending law whilst ensuring a high level of consumer protection. This article assesses the impacts of the Mortgage Credit Directive in Sweden and the United Kingdom. The focus is residential mortgage lending from a consumer protection perspective on the basis of the main areas of the directive; communications, advice, information, disclosure, responsible lending and repayment. The practical processes of mortgage lending and the ways these fields are regulated are significantly different in the two Member States; however, many similarities on a principle level can be found. The study is an example of how harmonisation is made within the eu and how two Member States with almost opposite starting points are able to harmonise law and still preserve the characteristics of their own solution.
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Jakušonoka, Ingrīda, and Linda Barakauska. "DEVELOPMENT AND USAGE OF SCORING SYSTEMS IN GIVING MORTGAGES BY COMMERCIAL BANKS OF LATVIA." Science and Studies of Accounting and Finance: Problems and Perspectives 10, no. 1 (November 25, 2016): 55–64. http://dx.doi.org/10.15544/ssaf.2016.06.
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Competition among banks is stiff in this field (mortgage loans), where everyone wants to offer clients more favourable terms and conditions, thus gaining the largest market share. However, the credit terms and conditions can vary considerably, given the purpose of credit and the collateral. The world uses different assessment methods for a borrower’s evaluation. Particular attention is paid to the borrower's credibility and additional creditworthiness by collecting, processing and evaluating important information on the credit applicant. This research work is based on theoretical knowledge in economics, legal documents and statistical data analyses to investigate mortgage lending by Latvian commercial banks, the potential risks, the solvency assessment models, including the scoring system (the system’s role in mortgage lending practised by Latvian commercial banks), and to develop proposals for the system improvement. In the paper, the authors give insight into the creditworthiness analysis model – Credit Scoring –, the Latvian mortgage credit market, different loan terms and conditions provided by Latvian commercial banks and lending development impacts and describe the essence of the scoring system and the way how Latvian commercial banks use the system. The new provisions of 2016 in the Consumer Rights Protection Law regarding requesting complete information allow considerably enhancing the loan scoring system of commercial banks in compliance with Directive 2014/17/EU of the European Parliament and of the Council of 4 February on credit agreements for consumers relating to residential immovable property.
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Gan, Christopher, Zhaohua Li, Weizhuo Wang, and Betty Kao. "Credit scoring in mortgage lending: evidence from China." International Journal of Housing Markets and Analysis 5, no. 4 (September 28, 2012): 334–50. http://dx.doi.org/10.1108/17538271211268457.
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Zinovyeva, Ekaterina G., Natalya R. Balynskaya, Svetlana V. Koptyakova, and Oksana O. Akhmetzianova. "Analysis of the residential mortgage market in the Ural Federal District." R-Economy 6, no. 1 (2020): 5–13. http://dx.doi.org/10.15826/recon.2020.6.1.001.
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The relevance of this study stems from the fact that it analyzes the current situation on the mortgage market in Russia: the influence of macro-economic factors causes a fall in collateral value, dramatic increase in mortgage default and poor performance of the Agency for Housing Mortgage Lending (AHML). The study is aimed at investigating the current state of residential mortgage lending on the regional level in Russia by focusing on the case of the Ural Federal District. The study considers the interests of all the participants of this market: individual borrowers, state authorities, financial and credit institutions engaged in mortgage lending. The study analyzes statistical data on the primary residential mortgage market in the Ural Federal District provided by the Central Bank of the Russian Federation, Federal State Statistics Service and the AHML. Results. Modern approaches to mortgage system evaluation are compared in order to identify and systematize the key criteria and statistical indicators characterizing the current state of this form of lending relationships. The analysis also brings to light the negative trends in mortgage lending in the Ural Federal District. As a part of our further research, we are going to develop a procedure for evaluating the performance of a mortgage system.
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A.F. Ferreira, Fernando, Sérgio P. Santos, Carla S.E. Marques, and João Ferreira. "Assessing credit risk of mortgage lending using MACBETH: a methodological framework." Management Decision 52, no. 2 (March 11, 2014): 182–206. http://dx.doi.org/10.1108/md-01-2013-0021.
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Purpose – Considered the largest investment for most households, buying a house requires careful and transparent analysis by all parties involved in the transaction. The aim of this paper is to propose a methodological framework allowing for the readjustment of trade-offs among risk evaluation criteria, considered of extreme importance in the lending decision process of mortgage loans. Design/methodology/approach – Multiple criteria decision analysis (MCDA) has proved over the years to be effective and versatile in handling compensations among criteria. Measuring attractiveness is applied by a categorical based evaluation technique (MACBETH) to a pre-established structure of credit-scoring criteria for mortgage lending risk evaluation. This pre-established structure is currently used by one of the largest banks in Portugal. Findings – The framework allowed the authors to provide the credit experts who participated in the study with a more informed, transparent and accurate mortgage-lending risk-evaluation system. The sensitivity and robustness analyses carried out also helped in promoting discussion and supporting the readjustments made. Research limitations/implications – The study shows the usefulness of using the MACBETH approach to assist credit analysts in making better informed decisions, and opens avenues for further research. However, due to the dependence on the participants involved, extrapolations without proper caution are discouraged. Practical implications – The credit analysts who participated in this study considered the framework more discerning in terms of Basel directives. Originality/value – The integration of MACBETH and credit-scoring mechanisms holds great potential for risk assessment and decision support. No prior work reporting the application of MACBETH in terms of mortgage-lending risk-evaluation is known.
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Kudryavtseva, N. N., Yu V. Pakhomova, and Yu N. Duvanova. "Reorganization of the technology and procedures for conducting mortgage transactions." Proceedings of the Voronezh State University of Engineering Technologies 80, no. 2 (October 2, 2018): 473–77. http://dx.doi.org/10.20914/2310-1202-2018-2-473-477.
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The article considers the structure of mortgage lending of PJSC "VTB24", presents the functions of the Department of mortgage lending and the Department of conclusion and support of mortgage transactions. The scheme of the mortgage transaction is analyzed and its advantages and disadvantages are given. At the moment, there is a high probability of further curtailment of Bank licenses and the flow of depositors ' funds to larger banks at lower interest rates. At the same time, the Central Bank allows for a 2 – fold drop in profits from banking activities to the level of 300 billion rubles a year. At the present stage of development of the Russian economy, the banking sector is no longer experiencing a period of rapid growth, as it was a year and a half earlier. However, credit institutions continue to slowly increase the volume of lending operations, thus trying to ensure the gradual saturation of the Russian market of banking services. The growth of assets of Russian banks is based on the increase in the volume of loans granted. Lending to the economy and the population has firmly taken the place of the main type of banking activity. The most rapidly developing segment of the credit services market is lending to the population. The mortgage market should be considered as part of the interaction between the banking market, the real estate market, the insurance market and the securities market and their derivatives. The level of development of the mortgage market depends on the level of development of these markets. They are interrelated and interdependent elements of a single mortgage system in the country. In turn, the mortgage market can also be seen as a necessary element of the above markets
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Sitnikova, E. V., and D. E. Maksakov. "INTERREGIONAL ANALYSIS OF THE STATE AND DYNAMICS OF MORTGAGE LENDING." Region: systems, economy, management 2, no. 53 (2021): 174–81. http://dx.doi.org/10.22394/1997-4469-2021-53-2-174-181.
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Subject. Organizational and economic relations developing during the functioning of the housing market and mortgage lending. Topic. Interregional analysis of the state and dynamics of mortgage lending. Purpose. The purpose of the work is to develop directions for increasing the efficiency of mortgage lending as the most important tool for the development of the housing market. Methodology. The study was carried out using abstract-logical, comparative, economic and statistical approaches, a graphical technique for visualizing statistical and calculated data. Results. To analyze the state of mortgage lending at the regional level, the volume of issued mortgage loans in a territorial context was considered, the structure and dynamics of issued mortgage loans for individuals was studied, the debt on mortgage loans was revealed, the dynamics of the weighted average interest rate in each federal district was analyzed. The analytical review carried out in the study made it possible to draw conclusions about the state of development of mortgage lending in the regions, as well as to offer recommendations for its improvement. Application area. The results of the study, the main provisions, conclusions, recommendations are focused on widespread use by business entities in the process of assessing and analyzing their mortgage lending. Conclusions. The significance of this study is due to the need to identify the degree of development of mortgage lending, which is especially important at the regional level. The purchase of own housing, which will be available not only for certain categories of citizens, but also for the majority of the population of the Russian Federation, is ensured through the development of the mortgage lending market. This form of lending contributes to the satisfaction of not only the interests of the bank and citizens, but also allows to ensure financial flows to the development of the real sector of the economy. Keywords: mortgage, mortgage lending, credit organizations, banking sector, housing construction, debt, regional banking system.
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Boonzaaier, Catherine, and Joseph Chisasa. "The Impact Of The National Credit Act On Residential Mortgage Lending In South Africa." Journal of Applied Business Research (JABR) 34, no. 3 (May 7, 2018): 533–44. http://dx.doi.org/10.19030/jabr.v34i3.10175.
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The purpose of the study reported in this article was to determine the impact of the National Credit Act on residential mortgage lending in South Africa. The National Credit Act (NCA) was promulgated and implemented on 1 June 2007. The purpose of the NCA was to remove the many unfair practices, inappropriate disclosure and anti-competitive practices from the market and to achieve honesty in the credit market. Low-income groups were held back because they could not gain access to formal finance to build or improve houses or supplement housing subsidies to get bigger houses. This study applied a quantitative research design using monthly time series secondary data for the period January 2001 to August 2011. The statistical analysis techniques used in this study were t-tests, descriptive statistics, trend analysis and correlation analysis. It was found that the NCA had a positive effect on the residential mortgages in South Africa. These results have policy implications on the continued regulation of the credit market and the avoidance of reckless lending.
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Pezzuto, Ivo. "Miraculous financial engineering or toxic finance? The genesis of the U.S. subprime mortgage loans crisis and its consequences on the global financial markets and real economy." Journal of Governance and Regulation 1, no. 3 (2012): 114–25. http://dx.doi.org/10.22495/jgr_v1_i3_c1_p5.
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In the fall of 2008, the U.S. subprime mortgage loans defaults have turned into Wall Street’s biggest crisis since the Great Depression. As hundreds of billions in mortgage-related investments went bad, banks became suspicious of one another’s potential undisclosed credit losses and preferred to reduce their exposure in the interbank markets, thus causing interbank interest rates and credit default swaps increases, a liquidity shortage problem and a worsened credit crunch condition to consumers and businesses. Massive cash injections into money markets and interest rates reductions have been assured by central banks in an attempt to shore up banks and to restore confidence within the financial system. Even Governments have promoted bail-out deal agreements, protections from bankruptcies, recapitalizations and bank nationalizations in order to rescue banks from disastrous bankruptcies. The credit crisis originated in the previous years when the Federal Reserve sharply lowered interest rates (Fed Funds at 1%) to limit the economic damage of the stock market decline due to the 2000 dot.com companies’ crisis. Lower interest rates made mortgage payments cheaper, and the demand for homes began to rise, sending prices up. In addition, millions of homeowners took advantage of the rate drop to refinance their existing mortgages. As the industry ramped up, the quality of the mortgages went down due to poor credit origination and credit risk assessment. Delinquency and default rates began to rise in 2006 as interest rates rose (Fed Funds at 5,25%) and poor households across the US struggled to pay off their mortgages. Many of them went bankrupt and lost their homes but the pace of lending did not slow. Banks have transformed much of the high-risk mortgage debt (securitizations) into mortgage-backed securities (MBS) and collateralised debt obligations (CDO), and have sold these assets on the financial markets to investment firms and insurance companies around the world, transferring to these investors the rights to the mortgage payments and the related credit risk. With the collapse of the first banks and hedge funds in 2007 the rising number of foreclosures helped speed the fall of housing prices, and the number of prime mortgages in default began to increase. As many CDO products were held on a “mark to market” basis, the paralysis in the credit markets and the collapse of liquidity in these products let to the dramatic write-downs in 2007. When stock markets in the United States, Europe and Asia continued to plunge, leading central banks took the drastic step of a coordinated cut in interest rates and Governments coordinated actions that included taking equity stakes in major banks. This paper written by the Author (on October 7th, 2008) at the rise of these dramatic events, aims to demonstrate, through solid and fact-based assumptions, that this dramatic global financial crisis could have been addressed and managed earlier and better by many of the stakeholders involved in the subprime mortgage lending process such as, banks’ and investment funds management, rating agencies, banking and financial markets supervisory authorities. It also unfortunately demonstrates the corporate social responsibility failure and the moral hazard of many key players involved in this crisis, since a lot of them probably knew quite well what was happening but have preferred not to do anything or to do little and late in order to change the dramatic course of the events.
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Sangeeta, Sangeeta, and Vinay Chamoli. "U.S. Sub-Prime Crisis: Origin and Causes." International Journal of Management, Entrepreneurship, Social Science and Humanities 3, no. 1 (June 30, 2020): 24–33. http://dx.doi.org/10.31098/ijmesh.v3i1.139.
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The purpose of this paper is to explain the boom and bust of the housing market in the U.S. and how the sub-prime mortgages gave birth to new securitized products in the global economy. The majority of the researches conducted previously to explore the reason for the sub-prime crisis and its impact on the volatility on the stock market of the home country (U.S.) and the other developing countries. This paper also contributes to the literature about causes, timeline, and major crisis events during the crisis period. The literature on the Subprime crisis revealed many causes of the Sub-prime crisis. These were Imprudent Mortgage Lending, Housing Bubble, Global Imbalances, Securitization, Lack of Transparency and Accountability in Mortgage Finance, Rating Agencies- The credit rating agencies gave AAA ratings to numerous issues of subprime mortgage-backed securities, many of which were subsequently downgraded to junk status. Deregulatory Legislation, Government-Mandated Sub-prime Lending, Complexity of certain financial instruments, Failure of Risk Management Systems, Excessive Leverage and Relaxed Regulation of Leverage were the most discussed reasons of Subprime Crisis.
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Neyaskina, Yu Yu, and O. V. Pukhova. "SHAPING THE VISION OF THE FUTURE IN MORTGAGE HOLDERS." Bulletin of Kemerovo State University, no. 2 (August 3, 2018): 104–13. http://dx.doi.org/10.21603/2078-8975-2018-2-104-113.
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The article features some results of an empirical research that defines the specifics of shaping the vision of the future in mortgage holders. The hypothesis under examination states the difference in the vision of the future in mortgage holders, those about to sign a mortgage lending contract, and those without mortgage obligations. The differences concern the level of detail elaboration and future construction, the expression of various modality orientations about future, and density of events. The methods included qualitative research methods, e.g. graphical method "Cottle’s Circles", "My future" essay, a technique for verbal response to the stimulus "The future", as well as quantitative ones. The obtained empirical data make it possible to say that the decision of taking mortgage lending credit changes the semantic matrix of the person, defines the specifics of subjective chronotype. In particular, it gives the specific coloring to the semantic and event shaping of one’s vision about the future. The results of the research can be used to organize psychological work with people who are going to take mortgage lending, as well as with mortgage holders.
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Van Heerden, Corlia Maritha, and Reinhard N/a Stteennot. "Pre-agreement assessment as a responsible lending tool in South Africa, the EU and Belgium: Part 1." Potchefstroom Electronic Law Journal 21 (April 18, 2018): 1–30. http://dx.doi.org/10.17159/1727-3781/2018/v21i0a2950.
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Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context the use of “pre-agreement assessment” as a tool to filter out those instances where, based on a consumer’s creditworthiness or ability to repay, credit should not be granted to such consumer, is a feature common to the lending regimes of various jurisdictions.This contribution consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.
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Van Heerden, Corlia Maritha, and Reinhard N/a Steennot. "Pre-agreement assessment as a responsible lending tool in South Africa, the EU and Belgium: Part 2." Potchefstroom Electronic Law Journal 21 (April 18, 2018): 1–38. http://dx.doi.org/10.17159/1727-3781/2018/v21i0a2954.
Full textAbstract:
Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context the use of "pre-agreement assessment" as a tool to filter out those instances where, based on a consumer's creditworthiness or ability to repay, credit should not be granted to such a consumer, is a feature common to the lending regimes of various jurisdictions. This contribution consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.
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Petersen, M. A., M. C. Senosi, J. Mukuddem-Petersen, M. P. Mulaudzi, and I. M. Schoeman. "Did Bank Capital Regulation Exacerbate the Subprime Mortgage Crisis?" Discrete Dynamics in Nature and Society 2009 (2009): 1–34. http://dx.doi.org/10.1155/2009/742968.
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This contribution is the second in a series of papers on discrete-time modeling of bank capital regulation and its connection with the subprime mortgage crisis (SMC). The latter was caused by, amongst other things, the downturn in the U.S. housing market, risky lending and borrowing practices, inaccurate credit ratings, credit default swap contracts as well as excessive individual and corporate debt levels. The Basel II Capital Accord's primary tenet is that banks should be given more freedom to decide how much risk exposure to permit; a practice brought into question by the SMC. For instance, institutions worldwide have badly misjudged the risk related to investments ranging from subprime mortgage loans to mortgage-backed securities (MBSs). Also, analysts are now questioning whether Basel II has failed by allowing these institutions to provision less capital for subprime mortgage loan losses from highly rated debt, including MBSs. Other unintended consequences of Basel II include the procyclicality of credit ratings and changes in bank lending behavior. Our main objective is to model the dependence of bank credit and capital on the level of macroeconomic activity under Basel I and Basel II as well as its connection with banking behavior for the period before and during the SMC.
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Karpa, Iryna. "DIAGNOSTICS OF MORTGAGE HOUSING CREDIT IN THE CONTEXT OF EXTENSION OF ACCESS TO CREDIT FROM THE POSITION OF ECONOMIC AGENTS." Economic Analysis, no. 27(2) (2017): 98–104. http://dx.doi.org/10.35774/econa2017.02.098.
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The systematic approach, the theory of management of economic and social processes, sociological methods of data collection, as well as methods of mathematical and statistical data processing have become the methodological basis of the study. The theoretical and methodological aspects of mortgage lending and its diagnostics are disclosed taking into account a variety of factors influencing the state of the market of residential real estate, provision of residential real estate to social and communal infrastructure. It is revealed that the state, banks and non-bank credit institutions take an active part in stimulating its development and solving the housing problem of its citizens. A number of containment factors that do not allow to intensify the development of mortgage lending is determined. Among them we can point out the following ones: political and legal (social and economic and political instability, low level of legal protection of relations of ownership of real estate objects, lack of a clear system of registration of real estate and methods of imposing the collection and alienation of property); social and economic (high inflation, low solvency and living standards of the population, the permanence of crises in the financial and credit market and the underdevelopment of the securities market); institutional and organizational (lack of unified system-based principles, standardization and unification of mortgage lending procedures, limited financially stable and developed financial and credit institutions); technical and technological (low level of technical and technological support of financial and credit institutions and databases used by them). The expediency of activating the reform of state banks and the transition to the implementation of the Strategy for their development, the publication of the macroprudential strategy and road map for the harmonization of banking regulation rules with international principles and standards have been identified. To ensure the success of the development of mortgage lending and the creation of appropriate conditions for its availability, for the overwhelming majority of citizens it is necessary to monitor the financing process of housing construction in the country.
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Prosov, Vyacheslav. "Economic and legal component of mortgage market development in Ukraine." University Economic Bulletin, no. 40 (March 1, 2019): 165–73. http://dx.doi.org/10.31470/2306-546x-2019-40-165-173.
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The development of the economic and legal component of the mortgage lending system in Ukraine is traced. It was determined that the adoption of the Law of Ukraine «On Property» was the first step towards the formation of the mortgage market in the country. The mortgage system is studied as a factor influencing the accumulation of free funds, their redistribution and risk reduction. The role of mortgage lending in solving socio-economic problems of the country is considered. The necessity of studying the experience of other countries and taking into account national peculiarities for effective development of the mortgage system in Ukraine is substantiated. It was emphasized that the level of development of the mortgage lending market shows the maturity of the financial system development and the degree of confidence of the population of the country in the financial and credit system. The subject of the study is evolution of the economic-legal component of the mortgage market in Ukraine. The purpose of the work is to substantiate the logic of the economic and legal aspect of the formation and development of the system of mortgage lending in Ukraine. To achieve the goal, the system approach was used - to integrate the methodology of scientific knowledge of the history of the development of the financial system in Ukraine as part of the world financial system, which made it possible to establish the need to take into account world experience, current problems and taking into account national specificity; logical-critical analysis - in determining the sequence and extent of the importance of separate legal acts in Ukraine. The practical significance of the results is the possibility of their use to improve the theoretical basis of the formation of the system of mortgage lending in Ukraine. Conclusions. 1) The modern market of mortgage lending is the result of a long, gradual, logical development of the financial market; 2) The level of development of the mortgage lending market indicates the maturity of the financial system and the degree of confidence of the population of the country in the financial and credit system; 3) For a long historical period, the Ukrainian lands belonged to different state formations; accordingly, the laws and the procedure for the formation of the financial system changed, which contributed to its «lagging» in development from the western countries; 4) The first step in shaping the system of mortgage lending in independent Ukraine was the adoption of the Law of Ukraine «On Property», because private property issues are the cornerstone of the country's mortgage system; 5) Mortgage should become an effective financial mechanism that overcomes the problem of accumulation of financial resources of our country in conditions of high inflation; will help to solve the problem of introduction of technological innovations, modernization of agriculture, industrialization of industry, solving chronic and large-scale problems of residential unfinished projects.
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Tajani, Francesco, and Pierluigi Morano. "An empirical-deductive model for the assessment of the mortgage lending value of properties as securities for credit exposures." Journal of European Real Estate Research 11, no. 1 (May 8, 2018): 44–70. http://dx.doi.org/10.1108/jerer-01-2017-0007.
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Purpose This study aims to propose and test an innovative methodology for assessing mortgage lending value. The method tries to improve and rationalize, within the canonical and derivative approach that is generally used by the sector operators, the appraisal of the percentage reduction to be applied to the market value. Design/methodology/approach Considering that the European Mortgage Federation and the Basel Committee highlight the importance of information about the risks of properties to be loaned on, the value at risk approach has been developed so as to assess the mortgage lending value as a technique of risk analysis. With reference to the Italian context, the method elaborates the historical analysis of the property values in 93 major Italian cities for the residential and commercial intended uses in a significant period (1967-2015) and allows to determine the reduction coefficients of the market value as a function of the central, semi-central and peripheral locations of the property. Findings The results include the reduction coefficients of the market value for the derivative appraisal of the mortgage lending value. The coefficients obtained satisfy the need for a rational assessment of the property risk and the appropriate spatial contextualization of the risk components related to the local demand and supply, thus eliminating any inconsistency and danger of determining the mortgage lending value using a simple and lump-sum percentage deduction of the market value. Originality/value The global economic crisis in the past decade, triggered by the 2007 US Subprime mortgage crisis and consequent collapse of property values, has highlighted the need for high level professional skills in the appraisal of properties as securities for credit exposures. The method proposed for the assessment of the mortgage lending value allows to overcome the uncertainties underlying the determination of an independent value through indirect methods (income approach, cost approach) and rationalize the appraisal of the risk in the traditional derivative approach through a flexible procedure, with it being possible to adapt it to any territorial context, as well as any intended use.
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Volkov, Anatoly A. "Influence of Socio-Economic Factors on the Development of the Home Mortgage Lending Market: The Case of the Vologda Region." REGIONOLOGY 29, no. 1 (March 30, 2021): 37–59. http://dx.doi.org/10.15507/2413-1407.114.029.202101.037-059.
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Introduction. Mortgage lending plays an important role both for the banking system and for the country’s economy as a whole. In addition to the main function of providing people with comfortable housing, mortgage system development stimulates various areas of the country's economy and creates conditions conducive for investment. The purpose of the paper is to single out the factors that have a negative impact on the home mortgage lending market on the basis of the case study of the Vologda Region. Materials and methods. The study was carried out on the basis of the statistical database of the Central Bank of the Russian Federation, data from an integrated housing development institution DOM.RF and the territorial body of the Federal State Statistics Service in the Vologda Region, as well as the Numbeo database ratings. Methods of comparison and observation, analysis and synthesis were used to study the statistics of the main indicators of the home mortgage lending market. Results. The main factors influencing the home mortgage lending market have been identified: high loan interest rates, low wages (insolvency of the client), an increase in overdue debts, high prices in the housing market, etc. The author has put forward recommendations for the development of the home mortgage lending market. Discussion and Сonclusion. The study has shown that the mortgage market in the Vologda Region has considerable growth potential and that credit institutions should work more carefully with clients, which will help to reduce overdue debts. The research materials may be useful to researchers exploring the economic issue under consideration, as well as to commercial banks, regional and local authorities that can contribute to the development of mortgage lending.
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Karmelavičius, Jaunius. "Risky Mortgages and Macroprudential Policy: A Calibrated DSGE Model for Lithuania." Ekonomika 100, no. 2 (September 6, 2021): 6–39. http://dx.doi.org/10.15388/ekon.2021.100.2.1.
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Following the financial crisis of 2009 there was an emergence of macroprudential policy tools, as well as a need to model the macroeconomy and the financial sector in a coherent framework. This paper develops and calibrates a small open economy DSGE model for Lithuania to shed some light on the interactions between the macroeconomy and the banking sector, regulated by macroprudential policy. The model features housing market, and endogenous credit risk a la de Walque et al. (2010), whereby the household can default on mortgage repayments, what leads to housing collateral seizure. Foreign-owned banks, that are subject to risk-sensitive macroprudential capital requirements, take into account not only the mortgage default rate but also the cap on loan to value (LTV) ratio when making lending decisions. Using this mechanism, we show that while a more stringent LTV constraint reduced credit demand, it can also lead to an expansion in credit supply via lower credit risk. Therefore, a tightening of LTV requirement should result in only a slight reduction in mortgage lending, coupled with lower interest rate margins. The article compares the impact of the tightening of three macroprudential tools, namely, bank capital requirements, mortgage risk weights and LTV limit. We find that broad-based capital requirements, such as the counter-cyclical capital buffer, are less efficient in leaning against the housing credit cycle, because of a relatively large cost incurred on the firm sector.
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Fishback, Price, Sebastian Fleitas, Jonathan Rose, and Ken Snowden. "Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s." Journal of Economic History 80, no. 3 (July 16, 2020): 853–85. http://dx.doi.org/10.1017/s0022050720000352.
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The Great Depression of the 1930s involved a severe disruption in the supply of home mortgage credit. This paper empirically identifies a mechanism lying behind this credit crunch: the impairment of lenders’ balance sheets by illiquid foreclosed real estate. With data on hundreds of building and loans (B&Ls), the leading mortgage lenders in this period, we find that the overhang of foreclosed real estate explains about 30 percent of the drop in new lending between 1930 and 1935.
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Shchurina, S. V. "Mortgage as an Available Source of Credit Resources for Investment Financing in 2019." Economics, taxes & law 12, no. 1 (March 12, 2019): 86–97. http://dx.doi.org/10.26794/1999-849x-2019-12-1-86-97.
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The subject of the researchis the availability of mortgage as a credit resource for investment funding. The relevance of the problem is due to the development of the mortgage credit lending in the country. The policy of the Central Bank of Russia (CBR) and the Russian Government aimed at combating inflation and planned reduction of the key rate created favorable conditions for establishing acceptable bank rates on mortgage loans, which significantly raised the mortgage demand over the past few years. The research shows that Russian commercial banks have reduced mortgage rates and are offering refunding of previously issued mortgage loans, which demonstrates the confidence of the banking sector in the government and economic stability at the macro level. At the same time, the easy access to home mortgage lending can lead to a “financial bubble” problem on the Russian banking market and, moreover, to deterioration of the borrowers’ solvency, and, therefore, loan default.The purpose of the researchwas to examine the current affordability of mortgage as a source of credit resources for investment funding and develop recommendations for improving this process. The paperconcludesthat the government policy of economic and financial stabilization through inflation combating measures and maintaining the key rate by the CBR at the level acceptable for economic growth should be continued. At the same time, the transition from the participation finance to the project-tied system of housing construction financing can possibly increase the loan interest burden on developers and affect the price per square meter for the final buyer. The main factors contributing to the reduction of mortgage rates are the planned reduction of the key rate by the CBR and low inflation rates, the program of the Government subsidies to the mortgage market as well as the increased supply of low-income housing by developers.
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Killick, Evan. "The Debts that Bind Us: A Comparison of Amazonian Debt-Peonage and U.S. Mortgage Practices." Comparative Studies in Society and History 53, no. 2 (March 29, 2011): 344–70. http://dx.doi.org/10.1017/s0010417511000089.
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Three years after the global financial crisis started academic and popular publications assessing its origins, consequences and wider implications are starting to emerge. The origins of the crisis are generally explained as stemming from the rapid increase in subprime mortgage lending in the United States and the credit default swaps banks and other financial institutions traded amongst themselves based on these loans. As homeowners found it increasingly difficult to make their repayments and housing prices in the United States started to drop, a downward spiral ensued. In this cycle ever-growing numbers of homeowners defaulted on their mortgages, unable to meet interest payments or to re-mortgage, and banks foreclosed on the houses even as their own assets and investments were exposed to the losses stemming from defaulted mortgages. With the foreclosures devaluing house prices further and the exposure of banks making them less willing and able to refinance mortgages, the situation quickly spiraled downwards. The complex global trade in credit default swaps and other derivatives meant that the problems were amplified and spread beyond the United States until ultimately many national governments decided to intervene with financial assistance mainly aimed at the financial institutions.
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Kovalevskaya, Natalya. "The Evolution of Mortgage Lending Institutions." Journal of Economic History and History of Economics 21, no. 4 (December 30, 2020): 653–81. http://dx.doi.org/10.17150/2308-2488.2020.21(4).653-681.
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The present article describes opportunities for seeking the forms of housing finance, which closely conform to the current needs of the society. The author analyses evolutionary developments of the two main mortgage lending systems, provided either by savings-and-loans banks or by mortgage credit banks. Historical development of loan associations and thrift institutions for housing construction is also in focus of the study. It explores the stages of transferring or, that is also called in literature, “transplantation” of the institutions from the country of origin to other countries. As a consequence of that, the modern studies contain such terms as “donor country” and “recipient country” of the financial institution, which reflect the nature of the transferring (transplantation) process. The evolution scheme of the two main mortgage institutions is considered. Criteria and stages of the institutions’ development in different countries are identified and described in the text. The author also analyses the impact of environment on the institutions’ development, which are dependent on different initial conditions of the institute implementation as well as on social and socio-economic conditions existing in the countries, which choose a certain model of mortgage institutions. The author evaluates the opportunity and attempts to develop the German construction thrift institution model in comparison to classic American mortgage model. The opportunities for developing different forms of mortgage lending in the modern context are under review in the article. They will depend on criteria of difference that financial institutions present as well on conditions of their activity.
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Robertson, Mari L. "Securitization and financial markets: the implications for interest rate pass-through." Journal of Financial Economic Policy 8, no. 4 (November 7, 2016): 472–98. http://dx.doi.org/10.1108/jfep-02-2016-0010.
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Purpose The transmission of monetary policy rates to lending rates is viewed as a crucial path of monetary policy. As an integral part of the financial system and the recent financial crisis, securitized assets have the potential to affect the interest rate pass-through process and monetary policy effectiveness. This paper aims to investigate the influence of securitization on the transmission of policy rate changes to lending rates and how rate transmission has changed since the recent financial crisis. Emphasis is placed on differences among the mortgage, consumer credit and business loan securitization markets and between agency and private-label securitization transactions. Design/methodology/approach The empirical framework is an error-correction model augmented to directly measure the influence of securitization. Monetary policy effectiveness is measured by the size and speed of transmitted policy rate changes to lending rates. An efficiency measure of relative adjustment accounts for differences in the size of long-run responses across loan markets and changes in efficiency from securitization within loan markets. Findings The size and speed of interest rate pass-through tend to increase with securitization. Liquidity, capital relief and funding from securitization help to make lending rates more responsive. Increases in pass-through with securitization are less in the consumer credit and business loan markets after the recent financial crisis relative to before the crisis. In contrast, mortgage markets tend to have larger pass-through after the financial crisis. Differences in rate transmission after the recent financial crisis point to the role on nonbanks in consumer credit and business loans and asset purchase programs of the Federal Reserve in mortgage markets. Securitization tends to make the adjustment process more efficient, and gains in efficiency from securitization are larger after the financial crisis. Originality/value A key contribution of the study differentiates securitization across markets and types to determine the effects on the interest rate pass-through process. The results show that increases in the efficiency of the adjustment process from securitization tend to be greater in mortgage markets and for all private-label securitized assets. These findings have implications for proposed government-sponsored entity (GSE) reform to reduce the role of GSEs in the housing market, promote private-label mortgage credit and strengthen securitization deals.
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Hamkalo, O. B., and K. S. Demkiv. "Benchmarking as a Tool for Providing Analytical Support to Mortgage Lending Operations of a Bank." Statistics of Ukraine 84, no. 1 (March 23, 2019): 91–99. http://dx.doi.org/10.31767/su.1(84)2019.01.10.
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The essence of benchmarking is investigated and questions of its organization in the course of mortgage lending operations in the bank are considered as one of the most effective modern tools for improvement of work and achievement of competitive advantages in the field of mortgage lending.
Taking into account the specifics of banking operations in the banking sector, benchmarking can be considered as a process for comparing the Bank’s services and business processes with the products of services and business processes of leading banks, best lenders, partners in order to borrow better practices in mortgage operations and their adaptation for obtaining competitive advantages in the market of mortgage banking services.
The classification signs of benchmarking of mortgage lending are singled out and systematized, which will enable the management of banks to purposefully apply the methodology of studying and introducing the positive experience of competitors, partners and other organizations, as well as promoting the innovative development of credit organizations, and in the future, specialized mortgage banks in Ukraine.
It is determined that the choice of the type of benchmarking depends on: the goals, goals and objectives set by the banks; ability to obtain the information and analysis necessary for comparison; the necessary financial, human resources, information, technological and other resources, as well as the experience of the workers and the time required for its implementation.
In order to improve the process of mortgage lending, the Bank proposes the following procedure for the introduction of a benchmarking procedure: the identification of areas to be improved, that is, objects of benchmarking, based on the results of the analysis of the state of mortgage lending in a bank; definition of the basic criteria of comparative analysis; search for benchmarking benchmarks; collection and processing of information; development of recommendations and their introduction into the policy of mortgage lending in the bank; monitoring and control over the implementation of decisions on problem solving. This creates the preconditions for using the positive experience of leading banks in the field of mortgage lending and forms the appropriate principles for developing a strategy for further development of the bank.
It is substantiated that the use of benchmarking in the activities of banks in relation to mortgage lending is a powerful tool in the context of global competition, and its implementation in the organization of economic analysis of mortgage lending operations of banks will allow for a higher level of application of mortgage opportunities.
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North, Gill. "Regulation Governing the Provision of Credit Assistance and Financial Advice in Australia: A Consumer's Perspective." Federal Law Review 43, no. 3 (September 2015): 369–96. http://dx.doi.org/10.22145/flr.43.3.2.
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Five years ago the global financial crisis threatened the world's financial system and its aftermath wreaked devastation across many parts of the globe. Mis-selling of home mortgages to consumers unable to repay their loans and global sales of financial products linked to residential lending were at the heart of the crisis. Financial reforms governing housing credit frameworks and the selling of complex financial products have ensued within domestic and international spheres. This article reviews the regulatory structures in Australia governing the provision of residential housing mortgages and credit assistance and the provision of financial advice. Its analysis focuses on customer suitability processes, client duties, and remuneration provisions because these legal features significantly influence, and can adversely impact, consumer outcomes. It suggests specific reforms to ensure adequate consumer protection and enhance the consistency and efficacy of the credit framework. It also calls for renewed debate on the remuneration structures of mortgage brokers.
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Shneiderman, I. M., and A. V. Yarasheva. "Population Borrowing Behavior: Trends and Risks." Voprosy statistiki 26, no. 3 (March 30, 2019): 15–22. http://dx.doi.org/10.34023/2313-6383-2019-26-3-15-22.
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The article deals with current issues related to modern processes of lending to the population in Russia. The article aims to identify possible risks and consequences of over-lending to individuals based on the analysis of statistical data. Research objectives include analysing data dynamics of volume of the issued housing loans for the past 13 years, including mortgage loans; tracing the dynamics of household debt (total and for this type of lending) in rubles and foreign currency in macro-regions (Federal districts) of the Russian Federation; and describing the features and trends of car loans in our country. Results of the study revealed an uneven increase in the amount of debt on loans of the population living in different macro-regions of Russia. The authors concluded that the share of personal debt to credit institutions on mortgages «inside» of housing loan debt from 2006 to 2018 has more than tripled. In general, reasons for changes in the credit behaviour of Russians lie in lowered interest rates and the fear of their future growth, chances of refinancing previously taken loans, concerns about rising inflation, pent-up demand for housing and durable goods. A further increase in the growth of consumer loans and the volume of public debt on them may lead to the overheating of the credit market.
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Watson, Ronald D. "Subprime Mortgages, Market Impact, and Safety Nets." Review of Pacific Basin Financial Markets and Policies 11, no. 03 (September 2008): 465–92. http://dx.doi.org/10.1142/s021909150800143x.
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The US financial system is undergoing a painful restructuring as credit losses originating in the mortgage finance sector of the economy grow ever larger. A combination of factors including general prosperity, demographic shifts in demand for housing, low interest rates, innovations in mortgage lending and securitization, and a breakdown in credit quality control systems all contributed to this problem. Public policymakers and industry leaders are struggling to find ways to stem the credit losses, restructure and recapitalize the financial industry, and set the economy on a path to recovery. This paper reviews the origins of this problem, explains the events that precipitated the crisis in 2007, and analyzes the pros and cons of the "fixes" that have been proposed to address these problems.
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Indah, May Er Rosary, Yulfasni Yulfasni, and Yussy Adelina Mannas. "Credit Take over Agreements with Guarantees of Mortgage Rights at Bank China Construction Bank Indonesia TBK. Pekanbaru Branch." International Journal of Multicultural and Multireligious Understanding 6, no. 5 (October 12, 2019): 151. http://dx.doi.org/10.18415/ijmmu.v6i5.1088.
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Credit take over agreements with guarantees of Mortgage Rights in the banking world can still be said to be attractive because CCB Indonesia Pekanbaru Branch is carrying out a binding agreement on take-over credit and Power of Attorney Imposing Mortgage Rights with the conditions of Land Rights Certificates and Mortgage Certificates still attached Mortgage rights for the Initial Creditors / Banks that are taken over. CCB Indonesia in approving the take over credit facility with the main consideration being that the debtor has a history of credit collectibility in the Debtor Information for the Financial Information Service System / IDEB SLIK OJK with current credit collectability. Debtors choose to take over credit facilities to CCB Indonesia because they obtain lower lending credit interest rates, higher credit facility ceilings, faster approval processes and credit decision making compared to Initial Creditors, free of administrative fees and free of notary fees. The main problem in this study is how to take over credit agreements with guaranteed mortgage rights at Bank China Construction Bank Indonesia Tbk. Pekanbaru Branch. How is the legal protection for the parties with a credit take-over agreement (take over) with guaranteed Mortgage Rights at Bank China Construction Bank Indonesia Tbk. Pekanbaru Branch. The method used in this research is empirical juridical research. Respondents / Informants as well as samples in this study are Credit Operations Head of "CCB Indonesia" Pekanbaru Branch of 1 (one) person and 7 (seven) Notary Partners of "CCB Indonesia" of Pekanbaru Branch. Data collection tool in this study was in the form of an interview. This research is descriptive in nature, providing complete and clear data on loan takeover agreements with guaranteed mortgage rights at Bank China Construction Bank Indonesia Tbk. Pekanbaru Branch. The results of the author's research indicate that the specificity of the credit take-over agreement (guarantee over) with guaranteed Mortgage in Article 3 explicitly specifies that currently the object of Mortgage Guarantee is still in the initial creditor / bank (taken over) and Article 4 expressly specifies that The debtor will transfer the funds to the initial creditor / bank account (taken over) from the proceeds from the disbursement of credit facilities obtained by the Debtor from the CCB Indonesia Pekanbaru Branch. After the signing of the credit agreement has been fulfilled, the Partner Notary issues a Cover Note / Certificate submitted to CCB Indonesia to continue the transfer of funds to the Debtor account at the Initial Creditors / Banks which are overtaken. Legal protection for the Parties in the Take Over Agreement with guaranteed Mortgage is carried out in 2 (two) forms, namely preventive and repressive from CCB Indonesia Creditor and Partner Notary.
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Dell'Ariccia, Giovanni, Luc Laeven, and Deniz Igan. "Credit Booms and Lending Standards: Evidence From the Subprime Mortgage Market." IMF Working Papers 08, no. 106 (2008): 1. http://dx.doi.org/10.5089/9781451869675.001.
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DELL’ARICCIA, GIOVANNI, DENIZ IGAN, and LUC LAEVEN. "Credit Booms and Lending Standards: Evidence from the Subprime Mortgage Market." Journal of Money, Credit and Banking 44, no. 2-3 (March 2012): 367–84. http://dx.doi.org/10.1111/j.1538-4616.2011.00491.x.
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Brits, Reghard. "The National Credit Act's remedies for reckless credit in the mortgage context." Potchefstroom Electronic Law Journal / Potchefstroomse Elektroniese Regsblad 21 (January 15, 2018): 1–34. http://dx.doi.org/10.17159/1727-3781/2018/v21i0a2955.
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The National Credit Act prohibits the granting of reckless credit and also provides for certain remedies that courts can grant to consumers who have fallen victim to reckless lending practices. Depending on the circumstances, these remedies are the partial or full setting aside of the consumer's rights and obligations under the agreement; the temporary suspension of the effect of the agreement; and the restructuring of the consumer's obligations. This article investigates these remedies with a focus on the effect that they would have on a creditor provider under a mortgage agreement. The argument is made that the contractual and security rights of creditor providers amount to "property" for purposes of section 25(1) of the Constitution (the property clause) and that, to some degree or another, each of these remedies involve a "deprivation" (limitation or modification) of the creditor provider's rights (property). The consequence is that, when one of these remedies is granted to a consumer, the court must tailor the remedy in such a way that the effect on the credit provider is not "arbitrary" as meant in the property clause. Therefore, the proposal is that there must be a sufficient relationship between the purpose of the remedy (to discourage reckless lending and to rectify the damage caused) and the effects thereof on the credit provider. In general, the remedy should not go further than what is necessary to rectify the prejudice suffered by the consumer due to the credit provider's conduct. The formulation of the remedy should accommodate considerations such as whether and to what extent either or both parties have already performed under the agreement, and it should accordingly ensure that the consumer will not be unjustifiably enriched. The remedy should also account for the effect that it would have if the consumer is permitted to keep the property that was subject to the reckless credit agreement. The article furthermore raises doubts regarding the recent high court judgment in ABSA v De Beer, where all the consumer's rights and obligations under a mortgage agreement were set aside due to the credit provider's reckless conduct. Remedies like this have serious consequences and therefore it is imperative that courts carefully investigate all the effects that the order would have, so that a just and reasonable outcome is achieved. This articles accordingly aims to provide some guidance with reference to the principles of constitutional property law.
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MOLCHANOVA, S. M., and O. S. LOSEVА. "FEATURES OF THE MODERN MORTGAGE LENDING SYSTEM IN THE RUSSIAN FEDERATION." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 2, no. 6 (2021): 88–94. http://dx.doi.org/10.36871/ek.up.p.r.2021.06.02.014.
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The article examines the process of mortgage lending in the Russian Federation, which, according to the authors, contributes to increased competition between market participants, which allows to optimize and im-prove the banking mechanism, reduce inflation and increase customer focus on banking products. It is noted that the use of the tool not only improves the social situation, but also contributes to additional activities in the construction sector, financial, insurance market, thereby increasing the investment attractiveness of the coun-try as a whole. The understanding of the term, the relationship with financial and economic relations, as a collaboration: a bank, a borrower, a financial institution is presented. The principles of housing mortgage lending and their implementation in the conditions of the Russian market are disclosed. The classification, types of mortgage lending, orientation and programs, taking into account the differentiation of clients, interest rates and social orientation, are generalized. The second part of the article is devoted to hedging risks and the reasons for their occurrence as a result of inconsistency with the nature and scale of the credit institution's activities, the requirements of the current legislation and violations in the banking sector.
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Kolotukha, S. N., E. N. Melnyk, and B. S. Husar. "Improving of economic mechanism for regulating the system of land mortgage lending." Collected Works of Uman National University of Horticulture 2, no. 97 (December 28, 2020): 53–64. http://dx.doi.org/10.31395/2415-8240-2020-97-2-53-64.
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Land-mortgage crediting as an instrument of attracting investments is widely used in the most developed market countries, however in Ukraine the marked type of crediting is on the stage of becoming. A study of question of land-mortgage crediting of agriculture is extraordinarily actual today, as a creation of its integral system gives an opportunity to the agricultural commodity producers to extend a production by means of recreation of material and technical base, technological reequipment due to the mortgage loans and to accelerate turnover of capital and to get an additional profit. On the results of the conducted study the chart of functioning of financial economic instrument of land-mortgage crediting is offered. It is proved that the efficiency of introduction of system of these instruments, as components of a corresponding mechanism of providing the balanced land-use in the field of agroproduction needs the promotion of market turnover of plot of lands of the agricultural setting. The model of system of a mortgage crediting on the security land is offered that provides the transmission of financial resources at the mortgage market from creditors to the borrowers on the security land with an active participation of infrastructural elements. It is substantiated that at the terms of introduction a market of agricultural land, it becomes not only the factor of production but also a motive force of economic development due to the influence on forming the system of financial economic relations and the system of land-mortgage crediting. The State joint-stock land (mortgage) bank must become the central link of the system of land-mortgage crediting. Measures for the increasing the efficiency of use of land of the agricultural setting must be conducted in a complex with the improvement of financial-credit mechanism.
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Nickerson, David, and David Scofield. "Property Risk, Foreclosure Costs and Rational Lending Discrimination." International Finance and Banking 4, no. 1 (May 3, 2017): 121. http://dx.doi.org/10.5296/ifb.v4i1.10089.
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Observations of significant differences in access to credit, loan terms and the volume of lending between demographically distinct groups of borrowers are often interpreted as evidence of potential ethnic, racial or gender discrimination by lenders. The competitive structure of credit markets and the accuracy of measuring individual credit risk render extant models of lending discrimination based on assumptions of credit market inefficiencies, such as adverse selection, increasingly implausible. In stark contrast to existing models of demographic discrimination, we consider a model of mortgage lending in an economy having complete markets, common knowledge and arbitrage-free pricing. Market equilibria in this classical environment may exhibit discrimination even when borrowers, who are distinguished only by observable demographic traits, share an identical measure of individual credit risk. Relatively costlier loan terms, a higher frequency of loan denials, or a complete rationing of credit to a particular demographic class of borrowers may be a value-maximizing strategy when rational lenders perceive that one or more such traits are directly related to adverse features of the representative property securing the loan to a borrower in this class. Omitted from standard statistical underwriting and regulatory review procedures, these features reduce the value of the collateral available to the lender in the event of future default. When loans are secured by such properties and both lenders and borrowers act strategically, discrimination on this basis will be a property of all market equilibria and can be consistent with an efficient allocation of credit.
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Mahindra, Muhammad Wildan, and Munsharif Abdul Chalim. "Analysis Juridical Notary Role Of Acquisition Of Assets Of The Debtor As An Alternative Solution Loan Loss (Case Study In Bank BNI Branch Semarang)." Jurnal Akta 6, no. 3 (September 20, 2019): 537. http://dx.doi.org/10.30659/akta.v6i3.5113.
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Banking development shows the dynamics of economic life. Prior to the practice that happens, a lot of problems that arise in the banking one of which is the number of cases of problem loans up to be a bad credit, this raises the firmness of the banks in the lending process. The acquisition made a lot of pros and cons between the customer and the Bank Negara Indonesia (BNI) Branch SemarangThe purpose of this study was to know and analyze the completion of the takeover of Bad Debts Mortgage Assets, identify and analyze the role of the Notary on Takeover Process Mortgage collateral and to know and analyze the obstacles that occur in the process of the takeover of mortgage collateral and settlement with Bank Negara Indonesia (BNI).This study using sociological juridical approach, the specification is descriptive analytical research, data sources used in the form of primary data obtained through interviews, secondary data with the literature study, qualitative analysis. The problem is analyzed using the theory of implementation and effectiveness of the rule of law.Based on the results of this study concluded that: 1) The need for a significant settlement between the banks by the debtor in the case of bad credit, the need for new regulations in Credit rescue to prevent possible lossesin a way Rescheduling, re requirements, reordering,2) The role of the Notary, in making this agreement directs, bank at Bank Indonesia Regulation (PBI) on Lending Limit for Commercial Banks and the guidelines for the general bank credit policies SoRegarding intervention of the notary bank credit agreement which refers to the bank's internal rules respectively for the 3) Barriers to solve the problem in bad debts suggesting there should be a code of conduct so that no authority notary public notary so not tricked by the bank.Keywords: Bad Debt; Foreclosure Of Collateral; Notary Role.
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Bezemer, Dirk, Anna Samarina, and Lu Zhang. "Does mortgage lending impact business credit? Evidence from a new disaggregated bank credit data set." Journal of Banking & Finance 113 (April 2020): 105760. http://dx.doi.org/10.1016/j.jbankfin.2020.105760.
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