Investment mortgage as an innovative banking product in the real estate financing market

Subject. This article discusses the role of investment mortgage in overcoming the crisis of attracting deposits by credit institutions and stimulating the investment activity of households in the real estate financing market. Objectives. The article aims to define particularities of investment mortgage and prospects for its development in the real estate funding market, and ways to improve the quality of mortgage bonds in the investment mortgage segment using artificial intelligence technologies in underwriting. Methods. For the study, I used the systems approach, comparative and logical analyses. Results. The article presents an author-developed definition of the Investment Mortgage category, its basic elements, and it describes the investment mortgage life cycle and risks. It also proposes to supplement the scoring through using the gradient boosting technique when underwriting a credit application for investment mortgage. Conclusions and Relevance. The investment mortgage segment, including mortgage deposit and mortgage loan, has a life cycle and risks that differ from the ones of the mortgage programs implemented in the banking services market. Using the gradient boosting technique can help improve the efficiency of underwriting applications for mortgage lending and investment mortgage. The results of the study can be used by credit organizations when developing a product line of mortgage lending programs in the investment mortgage segment, and digitizing credit underwriting of mortgage borrowers.

The legal nature of the relationship for the acquisition of certificates real estate fund

The article analyzes the legal nature of relations and the content of rights that arise on the basis of agreements for the acquisition of certificates of the real estate fund, and in particular the procedure for their implementation. The author considers the nature of the legal relationship, in which the main purpose is for the manager to perform the duties of the trustee with the greatest benefit and in the interests of the holders of certificates of real estate funds. An analysis of the relationship of participation in the real estate fund allows us to conclude that the trust relationship can be transformed into an absolute property right of the manager of the real estate financing fund, and investors (holders of real estate fund certificates) finance the construction.The funds invested in the real estate financing fund are used to finance a specific object. In the further investment process other participants take part, including the developer with whom the owner of the certificate of fund of real estate operations, is not in contractual relations. The owner of the certificates of the real estate fund has the right to require the manager to comply with the restrictions of the right of trust ownership in the process of fund management.The characteristics of the relationship for the acquisition of certificates of the real estate fund, where the basis of the binding relationship is property, is emphasized by differences and commonalities. The difference is that in contrast to property relations, which mostly involve the existence of the object, the moment of their occurrence, the inclusion of the object in the legal relationship is carried out by performing actions that must or may be performed by their participants, or from which you need to refrain.It is concluded that the agreement on the acquisition of FON certificates belongs to the generic type of property management agreements and the application of this agreement in the field of housing construction is due only to the fact that in this way funds are raised for its financing. transfer of ownership of housing.

DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA

Purpose: The purpose of this study was to establish the determinants of financial performance of NSE listed commercial banks in Kenya. Methodology: A descriptive study design attributed to a census approach aiming at the eleven listed commercial banks in Kenya was applied. The research relied on secondary data obtained from the audited financial statements of the said banks to create the correlation between the research variables. The information on the financial effecting of the listed banks was collected using a data collection matrix. The data was analyzed by the assistance of SPSS and the outcome presented in tables using statistical aspects, which include means and standard deviations. Results: The study established that government securities (r = 0.680) had a positive and strong correlation with financial performance. Similarly, Real estate (r = 0.738), Loans (r = 0.922) and, stocks (r=.469) had a positive and weak correlation with financial performance. The findings of study show loans (p=0.000) was most significant, followed by funds allocated to Government securities at p=0.149 then by funds allocated to stocks (p=.850) and least significant was real estate financing at p=0.972 at 95% confidence level. The findings show that there was a strong positive correlation (r=0.926) between Funds allocation and financial performance of commercial banks, according to the findings, 85.7% of financial performance of commercial banks could be attributed to the funds allocation to various assets. Adding another variable say, x5 will lower the strength of the model from 85.7 % to 84.6 %. Unique contribution to theory, practice and policy: The study recommends that listed commercial banks should diversify their real estate finance schemes to make it reachable to more customers since real estate had a significant effect of their financial performance. A study should be conducted on other variables such as inflation, exchange rates and interest rates fluctuations. A study should also be conducted to investigate the low yield of investment in loans in contrast to investment in government securities

Peculiarities and problems of implementation of state youth housing loans programs in Ukraine

The article dwells upon one of the most essential needs and benefits of the population – providing their own housing. Most young people are unable to solve housing problems on their own, so government support is significant to them. The issue of creating appropriate conditions that will increase the level of housing for the population is still relevant today. Theoretical and practical results of the study were obtained using the following methods: synthesis, analysis of evaluation methods, logical generalization. The works of many domestic scientists are devoted to the research of the problems of the state housing policy, among which: V.O. Omelchuk, V.B. Averyanov, M.F. Holovaty, P.I. Shestopalov, E.A. Sokolovskiy, E.O. Bublyk and others. The article analyzes the state and identifies the main features of the implementation of state programs of youth housing loans. Insufficient state funding for these programs, the constant growth of the number of citizens who need the state to ensure appropriate social living standards. All this encourages the search for new ways to improve the availability of real estate financing systems. One of them may be affordable mortgage loans. This will allow to effectively develop, in addition to housing programs for youth soft loans, a socially oriented mortgage market. Proposals have been made for the provision of affordable mortgage loans, depending on the level of solvency of the population, which will solve critical social problems of both young people and other categories of citizens. The opportunity to get their own housing in the future will increase the level of protection of vulnerable social groups, which in turn will encourage people to live and work in Ukraine.

FEATURES OF PROJECT FINANCING OF REAL ESTATE IN THE DIGITAL ECONOMY AND ITS STATE REGULATION

The problematic issues related to investment processes in the real estate market, based on modern tools of project financing, have been considered. The Russian experience of taxation of investment entities in the Russian Federation, the experience of private-public partnership in the process of investing in real estate objects, have been studied, the problems of using project financing by real estate market entities in the conditions of digitalization have been identified. The directions of improvement of financial, economic, social and legal aspects of state regulation of project financing have been proposed in order to ensure a balance of interests of various economic entities, which as States, firms and households are considered. Modern models of real estate financing by the banking sector have been reviewed.

A Didactic Engineering for the development of the Amortization System theme using the HP 12C Calculator Emulator

This article is an excerpt from the master's research related to a Didactic Engineering with the theme of Constant Amortization System and French Amortization System for the development of didactic situations related to the content of Higher Education Financial Mathematics, and which allows the use of the HP 12C financial calculator emulator. Currently, these amortization systems are being used by Brazilian financial institutions for real estate financing. The objective was to investigate how students of Administration and Accounting apply the mathematical knowledge of amortization in situations by using financial calculators. The methodological approach followed the Didactic Engineering steps, both for the construction of the didactic sequence and for its application and validation. The results indicate that the elaborated didactic sequence contributed to the development of the proposed mathematical content, as well as handling and the ways of dealing with the financial calculators in situations involving the amortization calculations.

Financing Structure and Liquidity Risk: Lesson from Malaysian Experience

This study examines the relationship between financing structure and bank liquidity risk. We compare the findings between Islamic and conventional banks for the case of Malaysia. We adopt four measures to represent financing structure; namely 1) real estate financing, 2) financing concentration, 3) stability of short-term financing structure and 4) stability of medium-term financing structure. Two BASEL III liquidity risk measures are tested; namely, liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) to measure short- and long-term liquidity risk, respectively. Based on panel data regression comprising 27 conventional and 17 Islamic banks from 1994 to 2014, our findings show that real estate financing and stability of short-term financing structure for Islamic banks are positively related to both liquidity risk measures. This implies that an increasing number of real estate financing and a stable short-term financing structure may increase Islamic banks’ short- and long-term liquidity risks. However, although real estate financing does not affect conventional banks’ liquidity risks, a stable short-term financing structure and increasing financing concentration can positively influence bank long-term liquidity risk. Our findings shed light crucial policy implications for regulatory bodies and market players in the context of liquidity risk management framework as well as the need to develop a separate framework between conventional and Islamic banking institutions.