scholarly journals Mortgage Loan: Assessment of the Current Situation and Impact on the Solution of Housing Problems

2020 ◽  
pp. 78-85
Author(s):  
Nelia Volkova ◽  
Kateryna Khamula
Keyword(s):  
Real Estate ◽  
Financial Market ◽  
Effective Means ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Legal Provisions ◽  
Current State ◽  
Mortgage Credit ◽  
Practical Recommendations

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.

scholarly journals Economic Mechanism and Cash Flows Modeling for Reverse Mortgage

2018 ◽  
Vol 22 (6) ◽  
pp. 106-120
Author(s):  
E. V. Kuz’mina ◽  
A. A. Yanin
Keyword(s):  
Real Estate ◽  
Senior Citizens ◽  
Market Equilibrium ◽  
Cash Flows ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Reverse Mortgage ◽  
Economic Mechanism ◽  
Expected Benefits ◽  
The Uk

The research is devoted to the economic mechanism of reverse mortgage —  a credit product aimed at improving the standard of living of senior citizens, owners of real estate. The idea of the reverse mortgage has been given, as well as the mechanisms of use of real estate owned by senior citizens in order to provide them with additional income. The examples of reverse mortgage in the uS, the uK, Spain and Australia have been given. The authors have also described the methods of reverse mortgage lending in Russia. Based on the analysis of international experience, the economic expediency of investing in this credit tool has been assessed. Considering consumer demand factor, it is possible to calculate the equilibrium rate and, therefore, to find the coordinates of the market equilibrium point. The authors have developed a mathematical model of reverse mortgage for the case of lifetime annuity payments. This model allows to calculate the expected benefits of borrowers and lenders. There have been done (and implemented) two notes that significantly distinguish reverse mortgage modeling from other loan products: 1) a lifetime reverse mortgage does not have a fixed expiration date; 2) when taking a loan of this type, borrowers consider not only consumption, but also accumulation of inheritance. The model allows to calculate the position of break-even points and market equilibrium (relative to the interest rate). This will help economically interested agents to assess the potential of the reverse mortgage market in Russia.

scholarly journals Choice between Rent and Mortgage: Evaluating the Net Present Value of Home Ownership

2019 ◽  
Vol 11 (4) ◽  
pp. 7-18
Author(s):  
O. I. Ivanov ◽  
M. M.S. Naimi
Keyword(s):  
Real Estate ◽  
Net Present Value ◽  
Home Ownership ◽  
Housing Prices ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Model Parameters ◽  
Macroeconomic Conditions ◽  
Financial Variables ◽  
Mortgage Interest

The article considers the problem of choosing between the ownership of residential real estate and its rental as a solution to the investment problem. The purpose of the article is to formalize this task using only financial variables (without explicitly including non-monetary preferences) and testing it on real Russian data on real estate and mortgage lending markets. The results can be used: a) at the house-hold level, which usually poorly take into account the financial side of the decision; b) at the level of macroeconomic policy to predict the dynamics of the mortgage market. We identified the following key model parameters: the expected rate of growth in housing and rental prices, mortgage interest, and the planned period of real estate ownership. The model demonstrates that for an average of Moscow or Russian housing with enough period of ownership, the purchase is generally more profitable in the cur-rent macroeconomic conditions. However, if the forecast for the dynamics of changes in housing prices worsens, when the nominal price increase is 5-8% lower than the discount rate, the answer may change in favor of renting. This is especially true in connection with the negative dynamics of real prices in the Russian housing market.  

scholarly journals Requirements for Intermediaries and Advisors in the Area of Mortgages Resulting from Mortgage Credit Directive– Implications for Poland

e-Finanse ◽  
2015 ◽  
Vol 11 (2) ◽  
pp. 18-31
Author(s):  
Krzysztof Waliszewski
Keyword(s):  
Consumer Credit ◽  
Credit Market ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Legislative Process ◽  
Mortgage Credit ◽  
Current Financial Crisis ◽  
Polish Law ◽  
Mortgage Credit Directive

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.

scholarly journals MORTGAGE LENDING MARKET IN THE RUSSIAN FEDERATION: CURRENT STATE, PROBLEMS AND PROSPECTS

2021 ◽  
Vol 2 (53) ◽  
pp. 72-78
Author(s):  
S.A. Starykh  ◽  
◽  
S.A. Lavoshnikova  ◽  
 A.D. Chesnokova ◽  
Keyword(s):  
Real Estate ◽  
Russian Federation ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
The Real Estate ◽  
Financial Bubble ◽  
The Real Estate Market ◽  
The Russian Federation ◽  
The Impact

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.

scholarly journals Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s

2020 ◽  
Vol 80 (3) ◽  
pp. 853-885
Author(s):  
Price Fishback ◽  
Sebastian Fleitas ◽  
Jonathan Rose ◽  
Ken Snowden
Keyword(s):  
Real Estate ◽  
Great Depression ◽  
Mortgage Lending ◽  
Credit Crunch ◽  
Collateral Damage ◽  
Balance Sheets ◽  
The Great Depression ◽  
Mortgage Credit ◽  
Home Mortgage ◽  
The Impact

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.

scholarly journals Prospects of using security mechanism in the process of rehabili-tation the building sphere in Ukraine

2018 ◽  
Vol 7 (3.2) ◽  
pp. 219
Author(s):  
Iryna Krekoten ◽  
Lyudmyla Svіstun ◽  
Yulia Khudolii
Keyword(s):  
Real Estate ◽  
Mortgage Market ◽  
Market Development ◽  
Security Mechanism ◽  
Residential Real Estate ◽  
Mortgage Loans ◽  
Mortgage Markets ◽  
Advantages And Disadvantages ◽  
Current State ◽  
The World

In this article, securitization was investigated as one of the most important sources of financing for the construction of residential real estate in Ukraine. The main purpose of the article is to explore ways to refinance mortgage loans used in the world practice for the rehabilitation the building sphere in residential real estate and to identify ways of expanding and cheapening them. The authors have found that a depository financing model uses on the Ukrainian mortgage market has significantly reduced the possibilities for its development and makes the mortgage expensive. Also, the models of the European and American mortgage markets were compared, identified the advantages and disadvantages of each model. And the possibility of using these models in Ukraine was considered. The current state of the mortgage market in Ukraine was examined. In addition, the trend of mortgage market development in a pre-crisis and post-crisis period was demonstrated in this article. Finally, the following conclusion was drawn: in order to increase the availability of mortgage loans and to rehabilitation the construction sphere, it is necessary to introduce mechanisms for refinancing mortgage loans.  

Analyzing the Causal Relationships Between Financial Crises and the Residential Mortgage Market

2021 ◽  
Vol 27 (8) ◽  
pp. 1773-1789
Author(s):  
Larisa I. YUZVOVICH ◽  
Mariya V. SHARAFIEVA
Keyword(s):  
Interest Rates ◽  
Financial Crises ◽  
Banking Sector ◽  
Recovery Period ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Causal Relationships ◽  
Active Growth ◽  
Residential Mortgage

Subject. We consider the economic relations, arising in the process of the analysis of the financial and economic state of the housing (mortgage) loan market during crises. Objectives. The aim is to conduct a study within the practical concept of financial crises and the residential mortgage market, to identify cause-effect relationships. Methods. We apply analytical and expert methods, based on the analysis of residential mortgage market data and the activities of the Agency for Housing Mortgage Lending. Results. The study determines the segmented role of digitalization of the banking sector in the system of State programs intended to support the residential mortgage market. We reveal causal relationships between financial crises and the residential mortgage market on the basis of a factor analysis. Conclusions. During 2008 and 2014, the government regulation of the banking crisis was only through changing the level of the key rate. It resulted in an increase in interest rates and a decrease in demand for mortgage loans, as affordable mortgage interest rates still remain the main driver of mortgage lending for citizens. This scenario gives rise to a stagnation of the residential mortgage lending market and, consequently, a very long recovery period. In contrast to the scenario of 2020, where we see an active growth in mortgage lending against the background of the financial crisis, the reason was the implemented set of measures that triggered the growth and formed a safety cushion for the banking sector in the form of secured lending.

scholarly journals Analysis of the residential mortgage market in the Ural Federal District

R-Economy ◽  
2020 ◽  
Vol 6 (1) ◽  
pp. 5-13
Author(s):  
Ekaterina G. Zinovyeva ◽  
◽  
Natalya R. Balynskaya ◽  
Svetlana V. Koptyakova ◽  
Oksana O. Akhmetzianova ◽  
...  
Keyword(s):  
Poor Performance ◽  
Federal District ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Federal State ◽  
Mortgage Default ◽  
Lending Relationships ◽  
Residential Mortgage ◽  
Current State ◽  
The Russian Federation

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.

scholarly journals Mortgage Loan as the Main Tool for Solving the Housing Problem of Russia

2019 ◽  
Vol 2019 (1) ◽  
pp. 37-44
Author(s):  
Светлана Бабина ◽  
Svetlana Babina ◽  
Софья Назаренкова ◽  
Sofya Nazarenkovaa
Keyword(s):  
Capital Market ◽  
Socioeconomic Development ◽  
Historical Analysis ◽  
Main Tool ◽  
Developed Countries ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Federal State ◽  
Housing Problem

The housing problem is extremely urgent for Russian citizens. This problem can be solved by mortgage lending in the market economy environment. The present research features the development of mortgage housing loans and identifies the existing problems in order to find ways to strengthen the mortgage capital market. The study is based on theoretical and methodological works on the theory of mortgage lending. It involves a comparative-historical analysis in the application to the mortgage capital market, as well as an analysis of the dynamic series based on statistical data of the Federal State Statistics Service, the Bank of Russia, and the Agency for Mortgage and Housing Crediting. The paper presents a retrospective analysis which makes it possible to conclude that, despite all the difficulties of socioeconomic development, mortgage lending has become an independent institution of the modern economic system of Russia. In conditions of economy stabilization, loans are becoming more affordable, and banks offer a variety of mortgage products on various terms. However, the position of the Russian mortgage market is still seriously inferior to that of developed countries. The authors propose several approaches to the development of the mortgage housing market, which may contribute to its further development and, thus, increase the role of mortgage in solving the housing problem, as well as construction volumes, production in related industries, and the Russian economy as a whole.

KOREA N REAL ESTATE MARKET AND BOOSTING POLICIES: FOCUSING ON MORTGAGE LOANS

2010 ◽  
Vol 14 (2) ◽  
pp. 157-172 ◽  
Author(s):  
Sungjoo Hwang ◽  
Moonseo Park ◽  
Hyun-Soo Lee ◽  
Yousang Yoon ◽  
Bo-Sik Son
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Influence Factors ◽  
The United States ◽  
Real Estate Market ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Economic Activities ◽  
Mortgage Loans ◽  
Mortgage Crisis

The Korean real estate market is currently slowing down due to the global economic crisis, which resulted from subprime mortgage crisis in the United States. In response, the Korean government has adopted various policies in an attempt to deregulate real estate speculation. For example, the Loan to value ratio (LTV) has been increased in order to stimulate housing supply, demand, and housing transactions. However, these policies could potentially result in a mortgage crisis due to an increase in over‐amplified and high‐risk derivatives in Korea's secondary mortgage market. Consequently, the housing market could fall into such deep confusion that it will be even more difficult to perform empirically based housing market forecasting. Therefore, a comprehensive and systematic method is required to analyze the real estate financial market and the causal relationships between market influence factors. With an integrated perspective and an application of a system dynamics methodology, this paper proposes Korean Real Estate and Mortgage Market dynamics models based on the fundamental principles and causal loops of housing markets, which are determined by the economic activities of consumers, financial agencies, and real estate financing investors. The potential effects of the Korean government's deregulation policies are also considered by focusing on the main factor of these policies: the mortgage loan. Santruka Korejos nekilnojamojo turto rinka šiuo metu išgyvena nuosmuki del pasaulines ekonomines krizes, kuri kilo del JAV būsto paskolu rinkos krizes. Reaguodama i tai, Korejos Vyriausybe emesi ivairiu politikos priemoniu, siekdama užkirsti kelia nekilnojamojo turto spekuliacijai. Pavyzdžiui, buvo padidintas paskolos ir vertes santykis (angl. LTV), siekiant skatinti būsto pasiūla, paklausa ir būsto sandorius. Tačiau šios politicos priemones galetu lemti būsto krize del per daug išplestos ir dideles rizikos išvestinemis priemonemis, didinant Korejos antrinio būsto rinka. Tačiau būsto rinka gali atsidurti tokioje painioje situacijoje, kad bus dar sunkiau atlikti empiriškai pagrista būsto rinkos prognoze. Todel reikalingas išsamus ir sisteminis metodas, padedantis analizuoti finansine nekilnojamojo turto rinka ir priežastini ryši tarp rinka veikiančiu veiksniu. Be integruotos perspektyvos ir dinamiško sistemingu metodu taikymo, šiame straipsnyje siūlomi Korejos nekilnojamojo turto ir paskolu rinkos dinamikos modeliai, pagristi pagrindiniais principais ir pagrindinemis nesekmemis būsto rinkose, kurios nustatomos pagal ekonomine vartotoju veikla, finansuojančias institucijas, ir nekilnojamaji turta finansuojančiais investuotojais. Galimas Korejos Vyriausybes pertvarkymo politicos rezultatas - sutelkti demesi i svarbiausia šiu politikos krypčiu rodikli - būsto paskolas.

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