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Journal articles on the topic 'Mortgage loan servicing'
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1
Van Drunen, Leonard D., and John J. McConnell. "Valuing mortgage loan servicing." Journal of Real Estate Finance and Economics 1, no. 1 (March 1988): 5–22. http://dx.doi.org/10.1007/bf00207900.
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Lux, Nicole, and Sotiris Tsolacos. "Loan Characteristics as Predictors of Default in Commercial Mortgage Portfolios." International Journal of Economics and Financial Research, no. 71 (February 17, 2021): 1–4. http://dx.doi.org/10.32861/ijefr.71.1.4.
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This paper examines the role of loan characteristics in mortgage default probability for different mortgage lenders in the UK. The accuracy of default prediction is tested with two statistical methods, a probit model and linear discriminant analysis, using a unique dataset of defaulted commercial loan portfolios provided by sixty-six financial institutions. Both models establish that the attributes of the underlying real estate asset and the lender are significant factors in determining default probability for commercial mortgages. In addition to traditional risk factors such as loan-to-value and debt servicing coverage ratio lenders and regulators should consider loan characteristics to assess more accurately probabilities of default.
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Cochran, Robert J., Edward N. Coffman, and David W. Harless. "FAIR VALUE CAPITALIZATION OF MORTGAGE LOAN SERVICING RIGHTS." Research in Accounting Regulation 17 (January 2004): 153–65. http://dx.doi.org/10.1016/s1052-0457(04)17007-0.
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Schneberger, Scott L. "Stater NV: E-Servicing Strategies." Journal of Information Technology 19, no. 2 (June 2004): 108–16. http://dx.doi.org/10.1057/palgrave.jit.2000014.
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After 2 years of on-line experiments, Tom van Vianen, CEO, felt certain it was time to fully implement STATER NV's new ‘e-servicing’ concept with a cohesive strategy. Established in 1997 in The Netherlands and headquartered in Amersfoort, STATER had 27 business clients and serviced over 80 different mortgage portfolios of more than 450,000 mainly residential loans in the Netherlands, Belgium, and Germany. Their mortgage service operations and information systems were considered state-of-the-art in 2002, but they were moving business on-line while simultaneously increasing the types of services provided and expanding operations into Spain, France, and Italy — within the next five years. In a land known for taming the forces of the sea, Tom faced what seemed like a sea of ‘e-uncertainty.’ What exact roles should STATER play in an on-line loan market? How should they position themselves to lead in those roles? The E-Servicing Steering Committee looked to Tom to direct them, and he knew he needed a clear vision for the next Steering Committee meeting in 2 months, in May 2002.
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Tsyganov, Aleksandr A., and Andrey D. Yazykov. "BANK REGULATION BASED ON PERMANENT AFFORDABILITY OF PAYMENT FOR A MORTGAGE BORROWER." Banking law 5 (October 29, 2020): 47–54. http://dx.doi.org/10.18572/1812-3945-2020-5-47-54.
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Mortgage lending plays a key role in providing citizens with housing. However, the processes of obtaining and servicing a mortgage loan are associated with the provision of a large number of interconnected finan-cial services, each of which requires a quality relationship with the consumer. The article proposes to discuss a number of basic indicators and approaches to increase the protection of financial services consumers in mortgage lending, as well as instruments of influence on financial organizations providing such services. In particular, it is proposed to fix the numerical value of the maximum debt burden on the borrower as an indicator of a sustainable mortgage loan, as well as factors taken into account when calculating it at any time during the life of the loan, and not only at the time of its issuance.
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Cochran, Robert J. "The Financial Accounting Standards Board’s Fair Value Mandate: Are Level 3 Assets and Liabilities Being Measured Accurately?" Accounting and Finance Research 7, no. 2 (January 15, 2018): 33. http://dx.doi.org/10.5430/afr.v7n2p33.
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This study asks the following question with respect to level 3 fair value assets and liabilities: are level 3 fair value assets and liabilities being measured accurately? An argument is made that since level 3 markets do not exist (as defined in ASC 820), it is not possible to determine a level 3 value. Data is examined, both pre- and post- SFAS No. 157 with respect to a specific level 3 asset that can be found on the balance sheet of most publically traded financial institutions, mortgage loan servicing rights. The data suggests that the FASB’s attempt to clarify fair value had no effect on the levels of capitalization of mortgage loan servicing rights. An additional argument is made that the language in ASC 820 undermines the requirement that level 3 fair values reflect a “market” value rather than an “investment” value.
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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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Vestewig, Robert P. "A review of commercial mortgage loan servicing best practice in the USA." Briefings in Real Estate Finance 3, no. 1 (June 2003): 35–49. http://dx.doi.org/10.1002/bref.87.
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Parihar, Mr Jayesh, and Prof Megha Bhogawar. "Review Paper- Reverse Mortgage in India." INTERANTIONAL JOURNAL OF SCIENTIFIC RESEARCH IN ENGINEERING AND MANAGEMENT 08, no. 01 (January 8, 2024): 1–10. http://dx.doi.org/10.55041/ijsrem27949.
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In today's fast paced business environment, banks operating in retail space require a change resilient vertically integrated value chain for delivering the most competitive product and services. This need is redefining the boundaries of a bank's value chain creating greater thrust for the value add, right from the lowest end of the delivery channels. In the loans and advances product space, this requires an integration strategy right from sourcing, evaluating and servicing to collections, recoveries and written-off management. This project elaborate the delivery capability of bank, operating loan against property space which is faced with challenges of rapid changing products and business process and also to handle large transaction volume handling due to high business volumes. This project focuses on the business challenges faced by one of the largest bank having 3000 concurrent users and with over 3 million customers worldwide. The bank needs to implement a business process with the needed level of automation and to build up services capabilities foe tapping a nationwide market for loans and advances business of secured and unsecured portfolio. Keywords – Reverse Mortgage, Retirement Planning, India, Financial Independence.
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Yurkiv, Nadiia, Oleksandr Dubrovin, and Serhii Davydenko. "State Support of Mortgage Lending as a Condition for Ensuring Stable Development of the National Economy." ЕКОНОМІКА І РЕГІОН Науковий вісник, no. 1(80) (March 25, 2021): 92–99. http://dx.doi.org/10.26906/eir.2021.1(80).2243.
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The issues of state support of mortgage lending in Ukraine as a tool to stimulate the housing market, expand the opportunities of a wide range of citizens to meet housing needs and ensure the stable development of the national economy are considered. The fragmentation of the state housing policy and various instruments of state support for housing market participants are noted. Emphasis is placed on the significant unrealized potential of the construction sector, whose contribution to the domestic economy is three times smaller than the European average. The state and dynamics of the housing stock of Ukraine, the development of which remains highly sensitive to changes in the economy, are analysed. The problem of inaccessibility of mortgage lending for the general population is emphasized, which is mitigated both by market decisions of banks to reduce real mortgage rates and government initiatives to introduce and improve programs for affordable loans and housing. The practice of state programs in the housing market is analysed and the preservation of problems of their effective implementation is noted, including limited and instability of financing, the ambiguity of participation conditions, narrow target orientation, the inconsistency of responsibility of program participants. The peculiarities of the current mortgage lending are determined, among which the increase of new mortgage loans, the dominance of agreements on the secondary market, the limited number of mortgage lending banks, the provision of mortgage loans for a short period. New government initiatives to stimulate mortgage lending are considered, among the positive aspects of which is the priority of reducing the % of loan servicing, harmonization of relevant regulations, clarification of the procedure for participation. It is proposed to apply a systematic approach to the development of state support programs, which will be based on priorities by stimulating the growth of incomes and solvency of broad sections of citizens and the involvement of innovative developers in programs.
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Gibilaro, Lucia, and Gianluca Mattarocci. "Peer-to-peer lending and real estate mortgages: evidence from United Kingdom." Journal of European Real Estate Research 11, no. 3 (November 5, 2018): 319–34. http://dx.doi.org/10.1108/jerer-12-2016-0048.
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Purpose This paper aims to collect data from a unique database provided by LendInvest and to study the key differences in the lending features for the two types of lending solutions. Findings Peer-to-peer (P2P) loans are prevalently short-term financing solutions (bridge financing), and the size of the loan is above average of the market. The loan portfolio is normally more geographically concentrated with respect to the average for the overall market and the main geographical areas for P2P lending are not just the main markets served by traditional lenders. Areas served by P2P lending have a lower population income than the national average and are characterized by below-average real estate price performance. Research/limitations/implications The results support the hypothesis of a complementary relation between conventional and P2P lending, showing that the latter represents a solution that is servicing areas that, because of the lower value of the collateral and lower average income, do not have easy access to the traditional mortgage market. Originality/value The paper is a first empirical contribution on the analysis of the market served by P2P real estate lending financing solution.
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Knyazev, Yuriy Konstantinovich. "Economic causes and social consequences of living in debt." Social'naja politika i social'noe partnerstvo (Social Policy and Social Partnership), no. 3 (March 15, 2023): 149–56. http://dx.doi.org/10.33920/pol-01-2303-02.
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Life on loan is increasingly becoming a habitual way of life not only for many people, but also for entire states. This phenomenon of modern reality requires scientific explanation and practical understanding in order to identify its possible consequences and prevent negative effects. This article is an attempt to contribute to the clarification of this issue. Living in debt is satisfying needs not from your own current income, but at the expense of borrowed funds. If this happens by borrowing the missing funds before the next salary without interest or with a small rate, this practice is caused by everyday circumstances and does not carry serious risks. It is a different matter when one has to borrow money in the form of bank loans for a long time with unclear prospects for servicing them, that is, paying monthly interest and paying off the principal debt on time. The phenomenon of living in debt arises in the case of regular use of consumer and mortgage loans due to a chronic shortage of current income and willingness to bear the risks associated with long-term debt servicing. The article deals with the problem of living in debt, which is relevant for the whole world and Russia. This issue is associated with the widespread use of borrowing to increase purchasing power in order to meet growing needs. The origins of the widespread practice of bank lending to households and its consequences for different segments of the population are investigated. The main motives of debt consumption are described and its size and dynamics in Russia in recent years are estimated. Attention is drawn to the debt problems faced by banks and corporations themselves, as well as states whose external and internal debt is constantly increasing. It is concluded that living in debt, which has become an everyday reality, is becoming an increasingly heavy burden for the population, business and states, fraught with serious economic and social consequences.
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Lin, Che-Chun, and Lan-Chih Ho. "Valuing Individual Mortgage Servicing Contracts: A Comparison between Adjustable Rate Mortgages and Fixed Rate Mortgages." Review of Pacific Basin Financial Markets and Policies 08, no. 01 (March 2005): 131–46. http://dx.doi.org/10.1142/s021909150500035x.
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This study constructs a valuation model from which an option-adjusted spread approach is employed to value individual mortgage servicing contracts for both adjustable rate and fixed rate mortgages. The valuation model is comprised of an exogenous OTS prepayment model, a stochastic interest rate process, and other servicing fees and costs, all of which jointly determine the servicing contract's future net cash flows and the rate at which to discount these cash flows. The sensitivity of the price of mortgage servicing rights to the changes in the economic environment is also analyzed. This work is potentially useful for servicers not only servicing mortgages but also servicing other types of loans in order to examine servicing policy-related issues.
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Lutsenko, S. I. "EFFICIENCY EVALUATION OF ACTIVITY OF THE RUSSIAN PUBLIC COMPANIES IN THE CONDITIONS OF ACTIVE REGULATION OF OPERATING COSTS AND EXTERNAL EFFECTS (SHOCKS)." Strategic decisions and risk management 12, no. 2 (December 14, 2021): 150–56. http://dx.doi.org/10.17747/2618-947x-2021-2-150-156.
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The author considers influences of active regulation of operating costs and negative effects (shocks) on financial policy of the Russian public companies. The Russian firms make the choice for benefit of internal financing for the purpose of increase in the corporate benefit in the conditions of external financial restrictions (sectoral sanctions). Growth of the corporate benefit leads to increment of company assets and respectively to welfare of the shareholder. The Russian public companies will review the capital structure in the conditions of growth of adjustment costs. The active policy of the Russian companies is connected with availability of sufficient size of assets which are source of mortgage providing for regulation of capital structure. Thereby, the organization solves problem of adverse selection – financing source selection taking into account its price. The companies are forced to regulate actively the capital structure in the conditions of growth of operating costs and negative shocks. Regulation of capital structure is connected with the aspiration of the company to keep part of debt for its use as financing source. Operating costs are the indicator estimating efficiency of management decisions. The Russian companies will finance the investments, first of all, by internal financing sources. Cash flows are the resource servicing the investment capital. The firms will be attracted the loan capital in the period of deficit of cash flow. The Russian companies will work in logic of precautionary motive, creating monetary stock in the conditions of shocks. The precautionary motive is the protective buffer from negative impacts from the capital markets. Low values of cash flows allow to limit the management concerning his illegal behavior – decision making in private interests.
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Catalán Chamorro, María José. "El derecho a la libre prestación de servicios o libre circulación de capitales en la Unión Europea vs. la protección del consumidor nacional croata a la luz del asunto C-630/17 Anica Milivojević vs. Raiffeisenbank St. Stefan-Jagerberg-Wolfsberg Egen = The right to free provision of services or free movement of capital in the european union vs. the protection of the Croatian national consumer in the context of the case C-630/17 Anica Milivojević vs. Raiffeisenbank St. Stefan-Jagerberg-Wolfsberg Egen." CUADERNOS DE DERECHO TRANSNACIONAL 12, no. 1 (March 5, 2020): 531. http://dx.doi.org/10.20318/cdt.2020.5201.
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Resumen: En el presente trabajo se analiza el impacto que ha tenido la Ley de nulidad de los contratos de préstamo con elementos internacionales celebrados en la República de Croacia con un acreedor no autorizado y su confrontación con la normativa europea. Esto se realiza a través de las cuestiones prejudiciales planteadas por un Tribunal municipal croata sobre la afectación del derecho a la libre prestación de servicios y libre circulación de capitales en la Unión Europea; alteración de los fueros competenciales, extensión del concepto de consumidor a empresarios y la concepción de los derechos reales.Palabras clave: Derecho a la libre prestación de servicios, Reglamento 1215/2012, defensa de los consumidores y derecho real de hipoteca.Abstract: This paper analyses the impact of the Law on the nullity of loan contracts with international elements entered into in the Republic of Croatia with an unauthorised creditor and its confrontation with European regulations. This is done through prejudicial questions raised by a Croatian Municipal Court on the effect of the right to the free provision of services and free movement of capital in the European Union; alteration of the jurisdictional privileges, extension of the concept of consumer to entrepreneurs and the conception of mortgage rights. Keywords: Right to freedom to provide services, Regulation 1215/2012, consumer protection and mortgage liem.
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Cardona, Noemí Jiménez. "Algunas Reflexiones Acerca de la “Mediación” en el Sector Financiero y Bancario. Especial Referencia a la Ley 7/2017 y el Anteproyecto de Ley de Medidas de Eficiencia Procesal del Servicio Público de Justicia de 2020." REVISTA INTERNACIONAL CONSINTER DE DIREITO 14, no. 14 (June 30, 2022): 199–230. http://dx.doi.org/10.19135/revista.consinter.00014.08.
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This article focuses its main hypothesis of study on the so-called “mediation in the financial and banking sector”, as a sectoral and specialized manifestation of consumer mediation. To achieve this end, the method used has focused on the doctrinal and jurisprudential analysis on the matter, with special reference to the treatment of extrajudicial procedures for conflict resolution in Law 7/2017 and the Draft Law on Procedural Efficiency Measures of the Public Justice Service (2020), as well as its particular application in the field of mortgage loans. Among the results achieved, it can be anticipated that the use of mediation in this area may be useful for the protection of consumers, although there are aspects of the current regulation as well as the one proposed by the preliminary draft that must be the subject of a necessary jurisprudential specification.
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Gunay Guliyeva, Ravan Piriyev, Gunay Guliyeva, Ravan Piriyev. "MONETARY POLICY OF WORLD BANKS DURING THE PANDEMIC." PAHTEI-Procedings of Azerbaijan High Technical Educational Institutions 30, no. 07 (May 12, 2023): 95–111. http://dx.doi.org/10.36962/pahtei30072023-95.
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Each state chooses a certain type of monetary policy, which varies depending on external conditions, the state of the national economy, the level of technical and technological development of public production, employment, income level and other factors. Restrictive monetary policy is primarily aimed at suppressing inflation and reducing the money supply; it is carried out by restricting the possibilities of lending to legal and natural persons by commercial banks; it leads to a decrease in investments, a decrease in production, an increase in unemployment, and a decrease in savings of the population. As a result, the decrease in consumer demand slows down economic development. Expansionist monetary policy, on the contrary, is aimed at expanding the scale of lending to legal entities and individuals by lowering interest rates, reducing mandatory reserve norms, and easing control over the growth rate of the money supply in circulation. Its implementation leads to an increase in the amount of loans and investments allocated to the development of production, which creates conditions for the increase in the volume of production, jobs, incomes and savings of the population. As a result, the increase in consumer demand stimulates the growth of production. The article is devoted to monetary policy and reactions of world central banks during the pandemic. The study analyzed the Japanese government's monetary policy during the Covid-19 pandemic, the Bank of England's response to Covid-19, and the Federal Reserve's policy response to the pandemic. Since the emergence of COVID-19, central banks around the world have taken emergency measures in coordination with fiscal authorities to mitigate negative effects on the economy and promote recovery. While monetary authorities have largely followed the scenario of the global financial crisis, the scope, scale and speed of the policy response to the pandemic has been unprecedented. Many central banks are turning to increasingly unorthodox approaches to monetary policy, particularly large-scale asset purchases, to boost economic growth. The central banks of Japan, Great Britain, the United States and the Eurozone have bought about $10.2 trillion worth of securities from their already large balance sheets since the outbreak, bringing their combined holdings to $25.9 trillion. The Fed has been buying $120 billion worth of securities each month, accumulating a total of $2.6 trillion in mortgage-backed securities and $5.5 trillion in US Treasuries. In addition to the current Asset Purchase Program (APP), the European Central Bank (ECB) has developed a €1.85 trillion Pandemic Emergency Purchase Program, which includes purchases of private and public sector securities. The recovery of the Japanese economy remains fragile due to low rates of vaccination of the population and restrictions on the pandemic. The shortage of electronic components in the world can negatively affect the production of cars and their foreign deliveries. At the same time, a worrying factor is the emergence of signs of a slowdown in the Chinese economy. On April 7, 2020, the Japanese government adopted a 117.1 trillion-yen (20.9% of 2019 GDP) emergency economic relief package against COVID-19 and included the remainder of previously announced packages. Key measures included issuing cash to everyone and affected firms, tax and social security deferrals, and soft loans from public and private financial institutions. The Government of Japan announced the Second Draft Supplementary Budget for Fiscal Year 2020 on May 27, 2020. The government has increased the amount of soft loans (interest-free and unsecured) primarily for micro, small and medium-sized enterprises affected by COVID-19. As a precautionary measure, the Parliament also approved an increase in the limit of government guarantees on capital injections in regional banks from 12 trillion yen to 15 trillion yen. On September 22, 2021, the Bank of Japan announced that it was keeping its monetary policy unchanged, but at the same time reported that the bank was carefully assessing the prospects for production and exports. The Bank of Japan maintained its assessment of the economic situation, saying that "the growth trend is strengthening, although the economy remains difficult". The bank is expected to keep the interest rate on short term deposits at minus 0.1% and on bonds maturing in 10 years at around 0%. Analysts note that this assessment was given on the eve of a change in the leadership of the ruling Liberal Democratic Party (LDP). Inflation is a limited phenomenon that manifests itself in a limited way in the markets for real goods and services. It can be provoked, among other things, by credit and deposit operations of commercial banks. Measures to combat inflation should be developed, as well as measures to measure it. US government debts are so large, so clearly unpaid, that the question of applying the institution of bankruptcy to individual municipalities has repeatedly arisen. Inflation-induced rise in interest rates will inevitably lead to an increase in the burden of servicing public debt. With a monetary policy aimed at targeting inflation in the region of 2%, the cost of attracting bond loans already at 7% will become the marginal value, after which a default is inevitable. The pandemic, and now its fourth wave is already underway, has objectively strengthened the trend of fencing off not only neighbors (Mexico and Canada), but also from the rest of the world. Keywords: monetary policy, world economy, budget, money supply, national market
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Coffey, Sean. "Regulating Mortgage Loan Servicing." SSRN Electronic Journal, 2008. http://dx.doi.org/10.2139/ssrn.1266826.
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Cochran, Robert J., and Hunter T. Shelnutt. "An Examination of Mortgage Loan Servicing Rights in the Aftermath of the Subprime Mortgage Crisis of 2006." Accounting and Finance Research 3, no. 1 (January 19, 2014). http://dx.doi.org/10.5430/afr.v3n1p46.
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Furfine, Craig. "Working at Workouts: Commercial Real Estate Debt in Distress." Kellogg School of Management Cases, January 20, 2017, 1–17. http://dx.doi.org/10.1108/case.kellogg.2016.000417.
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In 2010 Drive Property Solutions, a special servicing firm in Chicago, had partnered with Spiner Capital to win an FDIC auction of distressed debt. Included in that auction was the defaulted mortgage note on Northwinds Community Crossing, a retail strip mall in suburban Savannah, Georgia, which had been in default since November 2009. Sam Schey, an asset manager at Drive, needed to decide how to maximize recoveries from the nonperforming loan.
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Ozdemir, Bogie. "The blind spot in residential mortgages: Increasing default option value in the face of declining house prices." Journal of Risk Management in Financial Institutions, June 1, 2024. http://dx.doi.org/10.69554/fyol5342.
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The interest rate hikes intended to combat inflation have not only significantly increased mortgage payments, but also significantly depressed house prices. The probability of default for mortgages is typically estimated through the debt servicing ability of the obligor. The alternative estimation based on the default option, although well studied in literature, is typically not used by practitioners. This option is normally ‘deep out of money’ and moves in the money if the loan to value (LTV) increases significantly, even creating negative equity. This is typically a remote probability due to the down payment requirements, but not as much under the current environment, where the house price depreciation has significantly increased LTVs, especially for newer mortgages underwritten when house prices were at their peak. This paper discusses the potential risk management oversights in this environment, illustrating that the increasing default risk is not adequately captured in probability of default (PD) models based on debt servicing ability alone. This is also true for the loss given default (LGD) risk if the contemporaneous LTV effects are not captured. Numerical examples are provided to demonstrate the material increase in PD, LGD and the combined expected loss risk with increasing LTV. It also discusses an alternative default option PD model, its calibration and its usage for stress testing along with LGD modelling, which together capture the contemporaneous LTV effects.
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AGHABEKYAN, Edgar. "«Գերտաքացման» ռիսկերի կուտակում կամ անշարժ գույքի շուկայի և հիպոթեքային վարկավորման ներկա միտումները ՀՀ-ում / Accumulation of «Overheating» Risks or Current Trends in the Real Estate Market And Mortgage Lending in the RА." AMBERD BULLETIN, 2023, 5–15. http://dx.doi.org/10.52174/2579-2989_2023.3-5.
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In accordance with the tax changes that came into force in January 2015, income tax is refunded on the amount of interest paid for servicing a mortgage loan. This legislative change gave impetus to the growth of the real estate market and construction volumes. On the one hand, the adopted legislative possibility, and on the other hand, the limitation of its validity and transfer to other marzes gave a new pace to the development of the market. The paper discusses the main trends in the real estate market, price changes, and growth in lending. An attempt was made to identify the main risks of further developments.
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Yavas, Abdullah, and Shuang Zhu. "Misreporting of second liens in portfolio mortgages and privately securitized mortgages." Real Estate Economics, December 4, 2023. http://dx.doi.org/10.1111/1540-6229.12464.
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AbstractUsing a unique nationwide mortgage servicing dataset, this paper investigates the underreporting of second liens in portfolio mortgages and compares underreporting in portfolio versus privately securitized mortgages. Portfolio loans have more than 40% of the second liens underreported. Low documentation securitized loans have a 47% (in relative terms) lower misreporting rate than observably similar portfolio loans. The portfolio setting allows us to provide strong evidence that misreporting happens in the early stages of intermediation by lenders. The decreased occurrence of misreporting in sold loans subjected to more rigorous screening indicates the effectiveness of MBS issuers' screening, though its overall effect remains limited. Further, we show that the lender‐MBS issuer affiliation also plays a role in misreporting.
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Diop, Moussa, and Chen Zheng. "Mortgage Servicing Fees and Servicer Incentives During Loss Mitigation." Management Science, December 20, 2022. http://dx.doi.org/10.1287/mnsc.2022.4626.
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We study incentive problems associated with the compensation of servicers during default remediation. First, we fill a gap in the literature by identifying stylized facts about servicing fees. Next, we present evidence showing that servicing fees drive mortgage modifications and foreclosures, likely to the detriment of investors. Servicers modify loans paying high servicing fees and delay their foreclosure to protect servicing cash flows. These effects are causal. Voluntary mortgage renegotiation by servicers is unlikely to reduce foreclosures. In addition to ex post government intervention, special servicing and innovative mortgage contracts allowing for affordable modifications that benefit investors may improve renegotiation outcomes. This paper was accepted by Tomasz Piskorski, finance.
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Savko, Oksana, Juliia Bui, and Yaroslav Shtanko. "LENDING ACTIVITY DEVELOPMENT OF FINANCIAL COMPANIES IN THE SERVICE SECTOR OF INDIVIDUAL AND LEGAL ENTITIES." Market Infrastructure, no. 65 (2022). http://dx.doi.org/10.32843/infrastruct65-6.
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The article considers the credit activity of Raiffeisen Bank JSC and Privatbank JSC CB for 5 years. In general, lending to both individuals and legal entities decreased during the study period It is established that the composition and structure of credits issued by Raiffeisen Bank JSC is dominated by credits issued to legal entities (micro, small and large enterprises). Volumes of lending to microenterprises in 2020 decreased by 459,2 million UAH compared to 2019, small enterprises in 2020 by – 135,9 million UAH, and large enterprises by – 1902,1 million UAH. Comparing the volume of lending to legal entities with the base 2016, in general it is worth noting the increase in this indicator. In terms of lending, large enterprises account for the largest share among legal entities It is highlighted that the share of credits to small and large enterprises tended to increase during the analyzed period. This is due to the availability of assets in such entities and the possibility of providing them as collateral to obtain the necessary credit funds in comparison with individuals or micro-enterprises. The composition and structure of credits to individuals and legal entities of JSC CB "Privatbank" is represented by a wide range of services. Regarding credits to individuals (consumer credits, use of credit cards, mortgages, car credits and other credits), there is a tendency to reduce the analyzed indicators for the corresponding period except for consumer credits, which, on the contrary, tended to increase due to their availability, but a fairly high interest rate for the use of such funds. The analysis of the dynamics of indicators revealed a significant reduction in the provision of credit services for car purchase and other credits. With regard to mortgage, consumer and card servicing loans, the percentage decrease ranged from 15-21%. It was found that there was a slight increase in the share of credits to small and medium-sized businesses and legal entities. The decrease in lending to legal entities during the analyzed period was slightly lower than the decrease in lending to individuals. It is noted that the СOVID-19 pandemic has made adjustments to the activities of financial companies and business conditions of business entities and individuals, which leads to the formation and development of new methods of work and cooperation.
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Kuzmenko, Olha, Vitaliia Koibichuk, and Roman Kocherezhchenko. "FINANCIAL MONITORING OF ECONOMIC AGENTS CLIENTS BASED ON THE VERIFICATION AND IDENTIFICATION INCOMING AND OUTGOING DOCUMENTS." Scientific opinion: Economics and Management, no. 4(74) (2021). http://dx.doi.org/10.32836/2521-666x/2021-74-11.
Full textAbstract:
For the successful conduct of certain financial transactions, economic agents determine the requirements for incoming and outgoing documents and develop appropriate templates for documents and messages. Identifying and verifying persons are effective tools that are given a leading role and help prevent the circulation of criminal funds through the financial and economic system, reveal the sources of illicit income, and identify the beneficiaries of such illegal funds. The article develops a block diagram of incoming and outgoing documents related to identifying and verifying persons subject to financial monitoring by economic agents and provides a detailed description of each stage of verification, requirements for documents, and content. Verification of incoming documents consists of three stages. At the 1st stage, identification documents are checked; at the 2nd stage – constituent documents (charter, founding agreement, model charter, decision on creation, changes to the constituent document, corporate agreement, description of documents, ownership structure, employment agreement (contract), regulations on governing bodies, decisions on election of officials, appointment order, card with sample signatures), at the 3rd stage financial documents (balance sheet, report on financial results, transcripts of balance sheet items, declarations, income statement, certificate on the absence of arrears of payments to the budget, certificate of cash flow from the servicing bank, account statement, certificate of indebtedness, patents, licenses, permits, certificates, certificates, credit agreements, guarantee agreements, letters of credit, loans, collateral, mortgages, guarantees, agreements with suppliers and buyers, lease agreements). The block diagram of the source documents for financial monitoring consists of four tuples, the key determinants of which are notifications to the Specially Authorized Body, notifications to the Security Service of Ukraine, information to the National Bank of Ukraine, letters to the client (servicing, from conducting financial transactions, to freezing the client's assets or to freezing assets on a financial transaction frozen by an economic agent).
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Shchurina, S. V. "Social Inequality of Russian Society in the Relationship of Investments, Household Inequality in Income, Expenditure and Consumption." Economics, taxes & law, 2023, 96–107. http://dx.doi.org/10.26794/1999-849x-2023-16-2-96-107.
Full textAbstract:
The subject of the study is social inequality in Russian society, which determines the inequality of households in income, expenditure, consumption, ownership of financial assets and fulfillment of financial obligations, which requires the development of an effective state social policy to improve living standards, reduce inequality and poverty of Russian citizens. The objectives of the work are to identify the most socially vulnerable categories of the population on the basis of a sample survey of households and offer targeted social programs of state support. The study substantiates the need to strengthen the state's responsibility for the social inequality of Russian society and the adoption of economic measures to support socially vulnerable citizens. It is established that due to the lack of an adequate classification of the social hierarchy to date, the problem of social inequality and poverty is solved by supporting the most needy households in Russia. To do this, an analysis of the level and composition of available resources by socio-demographic type of households is carried out and a problematic category is identified, which currently includes large families. A gradation of households with financial difficulties in paying the payments set by them has been formed, mainly in terms of servicing consumer and mortgage loans. The measures proposed by the state to support households experiencing difficulties are given: an increase in the amount of social payments, primarily to families with children and wages for employees. The result of the social policy was a decrease in the number of poor Russian citizens. Conclusions are drawn about the need to reduce social inequality, which slows down economic growth and hinders the fight against poverty, by increasing the monetary incomes of the population, leading to a decrease in the number of citizens with incomes below the poverty line, as well as to improve citizens' personal assessment of their financial situation.