European Central Bank
Keywords: bank competition, bank funding, bankruptcy, banks, cost of funding (of banks), cost of housing loans...
Created/Revised: 2009-03
Veronica Cacdac Warnock and Francis E. Warnock
Journal of Housing Economics, 2008, vol. 17, issue 3, pages 239-251
Abstract: We examine the extent to which markets enable the provision of housing finance across a wide range of countries. Housing is a major purchase requiring long-term financing, and the factors that are associated with well-functioning housing finance systems are those that enable the provision of long-term finance. Across all countries, controlling for country size, we find that countries with stronger legal rights for borrowers and lenders (through collateral and bankruptcy laws), deeper credit information systems, and a more stable macroeconomic environment have deeper housing finance systems. These same factors also help explain the variation in housing finance across emerging market economies. Across developed countries, which tend to have low macroeconomic volatility and relatively extensive credit information systems, variation in the strength of legal rights helps explain the extent of housing finance. We also examine another potential factor--the existence of sizeable government securities markets--that might enable the development of emerging markets' housing finance systems, but we find no evidence supporting that.
Keywords: Mortgage; Housing; finance; Emerging;
markets
(search for similar items in EconPapers)
Date: 2008
Peter Neuteboom
European Journal of Housing Policy, 2003, vol. 3, issue 2, pages 155-171
Abstract: Mortgage take-up by homeowners differs enormously across Europe. The loan-to-value and loan-to-income ratios are quite dissimilar, ranging from some 20% and 0.9 respectively in Italy to more than 90% and 3.5 respectively in some countries in northwest Europe. In addition, the mortgage characteristics vary from a short-term serial loan to a high-risk endowment mortgage based on shares. To a certain extent, a statistical comparison of the loan-to-value and loan-to-income ratios can provide a good indication of the risks that owner-occupiers run in financing their own home. At the same time, this kind of comparison ignores the causes of the risks, namely the volatility or uncertainty of future interest rates, house prices and changes in income. It also disregards the main mortgage characteristics, the cost of taking out a mortgage, and the direct and indirect subsidies, including interest deductibility, factors that have a big influence on the real costs and risks for homeowners. A Monte Carlo simulation model (simulating house prices, interest rates and inflation for the duration of the mortgage) was used to calculate the net mortgage repayments and the associated mortgage risk. This simulation was undertaken for each of the countries concerned, using the typical mortgage characteristics, etc. The costs and risks of a mortgage in various countries of Europe could then be compared.
Keywords: Housing Finance; Mortgage Take-up; Monte
Carlo Simulation; Risk
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Date: 2003
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Marco Espinosa-Vega ( mespinosa@imf.org) and L. Zanforlin
No 08/105, IMF Working Papers from International Monetary Fund
Abstract: This paper reviews the Mexican experience with the securitization of residential mortgages. It highlights the key legislative and institutional reforms leading to the development of primary and secondary mortgage markets and reports the main features and valuation practices of the RMBS markets. The paper identifies areas warranting close attention to improve the outlook for the Mexican RMBS market and draws some lessons from the recent U.S. subprime mortgage market problems.
Keywords: Working
Paper; Mexico
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New Economics Papers: this item is included in nep-ure
Date: Written
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Downloads: (external link)
http://www.imf.org/external/pubs/ft/wp/2008/wp08105.pdf
(application/pdf)
Francesco
Drudi, Petra Köhler-Ulbrich, Marco Protopapa, Jiri (Jirka) Slacalek,
Christoffer Kok Sřrensen, Guido Wolswijk, Ramón Gómez Salvador, Ruth
Magono, Nico Valckx, Elmar Stöss, Karin Wagner, Zoltan Walko, Marie
Denise Zachary, Silvia Magri, Laura Bartiloro, Paolo Emilio Mistrulli,
Ioannis Asimakopoulos, Vasilis Georgakopoulos, Maria Kasselaki, Jorge
Martínez Pagés, Romain Weber, Christiana Argyridou, Wendy Zammit, Nuno
Ribeiro, Daniel Gabrielli, Nicola Doyle, Harri Hasko and Vesna Lukovic
European Central Bank
Keywords: bank competition, bank funding,
bankruptcy, banks, cost of funding (of banks), cost of housing loans...
Created/Revised: 2009-03
Andrea De Michelis
OECD, Economics Department
Keywords: United States, États-Unis, surveillance
prudentielle, financial regulation, financial crisis, crise ...
JEL-code: E44 G20 G21 G28 R21
Created/Revised: 2009-02-24
Timothy Besley ( t.besley@lse.ac.uk) and Maitreesh Ghatak
No 7259, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract: This paper explores the consequences of creating and improving property rights so that fixed assets can be used as collateral. This has become a cause célčbre of Hernando de Soto whose views are influential in debates about policy reform concerning property rights. Hence, we refer to the economic impact of such reforms as the de Soto effect. We explore the logic of the argument for credit contracts, both in isolation, and in market equilibrium. We show that the impact will vary with the degree of market competition. Where competition is weak, it is possible that borrowers will be worse off when property rights improve. We discuss the implications for optimal policy and the political economy of policy reform.
Keywords: collateral; credit
markets; Hernando
de Soto (search for similar items in EconPapers)
JEL-codes: G20
G28
K11 O16
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Date: Written
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list of references
No 10, Proceedings of the German Development Economics Conference, Kiel 2005 from Verein für Socialpolitik, Research Committee Development Economics
Abstract: This paper analyzes the importance of legal property documents in providing tenure security, enhancing agricultural investment incentives and easing access to credit. While theory predicts that better property rights on land can increase investment through increased security, enhanced trade opportunities and increased collateral value of land, the presence and size of these effects depend crucially on whether those rights are properly enforced. In Nicaragua, a troubled history of land expropriation and invasion has undermined the credibility of the legal property regime. The variation in legal ownership status due to a land titling and regularization programme is studied to identify the effects of legal ownership documents. Possession of a registered document is found to increase the probability of carrying out land-attached investments by 35%. No difference is found in the effect of public deeds and agrarian reform titles provided they are both registered and we find no strong evidence of a credit supply link, thus suggesting security of tenure as the channel through which formal land ownership has an effect on investment.
Keywords: Property
rights; investment;
land
reform; Nicaragua;
land
ownership (search for similar items in EconPapers)
JEL-codes: Q15
O13
D23
K11 (search for
similar items in EconPapers)
New Economics Papers: this item is included in nep-agr,
nep-law
and nep-ure
Date: Written
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Downloads: (external link)
http://hdl.handle.net/10419/19803
(application/pdf)
1 Property
Enforcement as Organized Consent
Benito Arruńada
Department of Economics and Business, Universitat ...
Keywords: Transaction costs, property rights, real
estate, land titles, recording, registration
JEL-code: K11 K12 L85
Created/Revised: 2001-04
2 Third
Party Originators and Mortgage Prepayment Risk: An Agency Problem?
Michael LaCour-Little and Gregory H. Chun
Journal of Real Estate Research
JEL-code: L85
Created/Revised: 1999
3 Efficient
Mortgage Default Option Exercise: Evidence from Loss Severity
Gordon W. Crawford and Eric Rosenblatt
Journal of Real Estate Research
JEL-code: L85
Created/Revised: 1995
4 Performance
of the Swedish Real Estate Sector 1998-2002
Klaus Hammes and Yinghong Chen
Göteborg University, Department of Economics
Keywords: Real Estate; Sweden; Panel Data;
Performance; Simultaneous Equations
JEL-code: C23 C33 G30 L85
Created/Revised: 2004-01-28
1 documents matching housing finance mortgage finance collateral in Keywords & Title among working papers and articles
1 Housing Finance and Monetary Policy