by Bok Kwok-cheung, Fok Kai-man, Ling Wai-hong. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1988. / Bibliography: leaves [121-122]

This Diploma thesis analyzes the development of the mortgage market in Slovakia. The thesis achieves partial goals which lead to the analysis of the factors affecting the mortgage market. The subject of the practical part, which at the same time happens to be a partial goal, is to analyze the overall development of the mortgage market together with the surrounding markets, to identify the key factors, to monitor their development along with the development the mortgages provided, and to analyze econometrically selected factors affecting the mortgage market. The analysis shows the scope of the force and direction of the selected factors. The theoretical part emphasizes the characteristics of the type of mortgage banking with a focus on the system existing in Slovakia. The thesis also follows the risks from the perspective of the entities in mortgage banking. It also defines the rules, interest rate conditions and types of government-sponsored support. The relationships between the Slovak mortgage market and its subjects are also being explained. Special attention is being paid to the legislative developments having current impact on mortgage banking.

This paper sets out to explain the observed mortgage rate dispersion in the Swedish mortgage rate market through a consumer search model. Utilizing a structural approach that only requires average mortgage rate data, the search cost distribution for consumers are estimated for the period May 2016 to February 2017. Examining the different contract lengths for mortgages, the three-months and one-year mortgage rates do not fit the consumer search cost framework but the two- tree- and five-year fixed mortgage contracts fits well. The results indicate that there is considerable search cost in the mortgage market and that the low number of searches yields considerable market power to the banks, in the sense of being able to price mortgages above marginal cost. Further the fitted model for the five-year fixed mortgage rate is used to simulate the effects from a cost increase for the banking sector. The results indicates that due to the high consumer search costs present in the market, the mortgages facing the consumers will increase substantially to modest cost increases. A decrease in the consumers search costs are also simulated, which results in lower expected mortgage rates. This paper adds to the literature through the use of average monthly data and a search cost perspective to the question of why there are dispersions of mortgage rates in the Swedish mortgage market.

The aim of this thesis is to describe Czech mortgage market and follow its development from the beginning till now. This thesis does not contain only description of mortgages, but also gives the demographical overview of regions and mortgages analyses provided by competitive banks. Following attention is dedicated to "Hypoteční banka, a.s.", which was the first on the Czech market and this bank is still the number one, following by competitors. This thesis is focused on its strategy, with the detailed description of financial results. Thesis also contains tables and graphical analyses for easier understanding and clear overview.

Thesis advisor: Michael Grubb / This dissertation consists of two chapters on the industrial organization of mortgage markets in the United States.In the first chapter, titled “Consumer Search Costs in U.S. Mortgage Markets”, I focus on estimating the distribution of consumer search costs in the market for government-backed mortgages in the US during the period from September 2013 to March 2015. I adapt the Hortaçsu and Syverson (2004) search model to mortgage markets. I estimate the distribution of consumer search costs in each U.S. state using recent data on government-insured mortgages. I find that estimated search costs are large; a median borrower would face a search cost equivalent to about $40 in monthly repayment. At the state-level, search cost magnitude is related positively to household income and age and negatively to years of education. I solve counterfactual scenarios in order to study the relationship between search costs and welfare. Compared to the full information scenario, the presence of costly consumer search decreases social welfare by about $600 in monthly repayment per borrower. This decrease in welfare occurs because under costly search borrowers are matched with lower quality lenders and spend resources on searching. At the national level, this decrease corresponds to approximately $35 million per-month. Reductions in search costs would raise social welfare monotonically. A 10% reduction in search cost may raise social welfare by as much as $130 per borrower per month. These findings support recent policies that aim to reduce search costs of mortgage borrowers. In the second chapter, titled “Price Discrimination in U.S. Mortgage Markets”, I examine the existence of price discrimination generated by costly consumer search in the market for mortgages. I develop a stylized model of consumer search in mortgage markets where firms charge optimal prices that depend on borrowers' search cost level. The model produces testable restrictions on the conditional quantile function of observed transacted rates. Using the data on insured Federal Housing Agency loans where price variation is not driven by default risk, I run a quantile regression of transacted interest rates on a set of loan observables, including borrower's credit score, original principal balance, and loan-to-value ratio, among others. I find that predictions of the theoretical model are satisfied for all loan observables under consideration, and price discrimination created by costly consumer search is likely to exist in U.S. mortgage markets. / Thesis (PhD) — Boston College, 2018. / Submitted to: Boston College. Graduate School of Arts and Sciences. / Discipline: Economics.

by Lo Chi Wai. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1999. / Includes bibliographical references (leaves 54). / ABSTRACT --- p.II / TABLE OF CONTENTS --- p.III / LIST OF TABLES/CHARTS --- p.VI / PREFACE --- p.VI / Chapter / Chapter I. --- INTRODUCTION --- p.1 / INTRODUCTION --- p.1 / Structure of the Paper --- p.2 / Chapter II. --- HONG KONG PROPERTY MARKET --- p.3 / The Property Market during 1990's --- p.3 / Supply of Residential Property --- p.4 / The future property price --- p.4 / Mortgage Pool --- p.7 / Chapter III --- MORTGAGE CORPORATION --- p.10 / The Player in Securitization --- p.10 / Mortgage Corporation in U.S --- p.10 / The different between U.S. situation and Hong Kong situation --- p.11 / HONG KONG MORTGAGE CORPORATION --- p.12 / HKMC's share in the residential mortgage market --- p.13 / HKMC's mortgage portfolio --- p.13 / HKMC's Benefit --- p.13 / Originator's and investor's Perspective --- p.16 / Chapter IV. --- THE PROGRESS OF HKMC --- p.20 / Fixed rate mortgage Pilot Scheme --- p.20 / The debt program --- p.21 / Mortgage Guarantee Scheme --- p.23 / Chapter V. --- DIFFICULT OF MBS PRICING --- p.27 / RISK --- p.28 / The Financial institution might find MBS unattractive? --- p.34 / Chapter VI. --- PROSPECT --- p.35 / Fully-fledged credit reference agency --- p.35 / Fixed rate Mortgage promotion --- p.35 / US dollar/Hong Kong dollar Swap --- p.36 / Mortgage lending rate war --- p.36 / Debt Market --- p.37 / Standardization --- p.37 / Credit Rating --- p.38 / Don't let the history repeat itself --- p.38 / CONCLUSION --- p.39 / APPENDIX --- p.40 / BIBLIOGRAPHY --- p.54

This thesis is focused on evolution of mortgage market of Czech Republic and Russia and development of macroeconomic factors. The theoretical part of this thesis describes the status and importance of mortgage loans as a part of the bank loan products. Another part is dedicated to get acquaint readers with the types of mortgage loans, the credit process and the influence of macroeconomic factors on the mortgage market. The practical part is devoted to analyzing the evolution of the mortgage market in Czech Republic and Russia in terms of macroeconomic factors. In the end, there is a short characteristic of the current situation on the mortgage market in these countries.

by Cheng Lok-Man. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1999. / Includes bibliographical references (leaf 106). / ABSTRACT / TABLE OF CONTENTS / LIST OF ILLUSTRATIONS / LIST OF TABLES / Chapter / Chapter I. --- INTRODUCTION / Chapter 1. --- Introduction --- p.1 / Chapter 2. --- Methodology --- p.2 / Chapter 3. --- Source of Information --- p.3 / Chapter 4. --- Structure of the paper --- p.4 / Chapter II. --- THE EMERGENCE OF NEW VEHICLE ~HONG KONG MORTGAGE CORPORATION / Chapter 1. --- History --- p.6 / Chapter 1. --- Reasons for the Property Boom (1990-1994) --- p.6 / Chapter a. --- Diminishing Real Interest Rate --- p.6 / Chapter b. --- Demand- Supply Mechanism --- p.6 / Chapter c. --- Chinese Economy and Psychological Effect --- p.6 / Chapter 2. --- Loan mix of the Banking Sector --- p.7 / Chapter 3. --- Mortgage War --- p.7 / Chapter 2. --- Framework of HKMC --- p.8 / Chapter 3. --- Mechanism of HKMC --- p.9 / Chapter 4. --- Phenomenon of the Mortgage Market in Hong Kong --- p.10 / Chapter III. --- MORTGAGE CORPORATION: THE WHOLE PICTURE / Chapter 1. --- Benefits of Hong Kong Mortgage Corporation --- p.13 / Chapter 1. --- Contribution to Home Financing --- p.13 / Chapter 2. --- Banking Stability --- p.14 / Chapter 3. --- Monetary Stability --- p.15 / Chapter 4. --- Development of Debt Market --- p.16 / Chapter 2. --- "Mortgage market in United States, Canada & Hong Kong" --- p.16 / Chapter 1. --- Hong Kong --- p.17 / Chapter 2. --- United States --- p.17 / Chapter 3. --- Canada --- p.18 / Chapter 3. --- Limitation of Hong Kong Mortgage Corporation --- p.19 / Chapter 1. --- Banks are not urgent to sell the mortgages --- p.19 / Chapter a. --- The Attitudes of Local Banks --- p.20 / Chapter b. --- The Attitudes of Foreign Banks --- p.21 / Chapter 2. --- Limit Capital Base --- p.22 / Chapter 3. --- The Issue of Fixed Rate Mortgages --- p.22 / Chapter 4. --- Practical Problems of Mortgage Corporation --- p.23 / Chapter 1. --- Differential Attitudes of HKMC & Banking Sector --- p.23 / Chapter 2. --- Unclear Attitudes of the Parties that related to HKMC: Are they helpers or the enemies? --- p.25 / Chapter a. --- Investors --- p.25 / Chapter b. --- Credit Rating Agency --- p.26 / Chapter c. --- Insurance Companies --- p.26 / Chapter 3. --- Over Optimistic of Risk Management --- p.27 / Chapter a. --- Risk arising from Operation --- p.27 / Chapter 1. --- Credit Risk --- p.27 / Chapter 2. --- Interest Rate Risk --- p.28 / Chapter 3. --- Prepayment Risk --- p.29 / Chapter 4. --- Operational Risk --- p.30 / Chapter b. --- Risks arising from issuing of Mortgages Backed Securities --- p.30 / Chapter 1. --- Delivery Risk --- p.31 / Chapter 2. --- Interest Rate Risk --- p.32 / Chapter 3. --- Issue in the pricing of mortgage backed securities --- p.32 / Chapter IV. --- PERFORMANCE OF THE MORTGAGE MARKET AND HKMC AFTER SET UP / Chapter 1. --- Pilot Scheme of Fixed Rate Mortgage in Hong Kong --- p.33 / Chapter 2. --- Relaxation and Simplification of mortgage loan criteria --- p.35 / Chapter 1. --- Simplification of the purchase of mortgage loans --- p.35 / Chapter 2. --- Relaxation of the criteria of the mortgage loans accepted by HKMC --- p.36 / Chapter 3. --- Debt Issuance Activities --- p.37 / Chapter 1. --- Note Issuance Programme (NIP) --- p.37 / Chapter 2. --- Debt Issuance Programme (DIP) --- p.38 / Chapter 4. --- Forward Commitment Facility --- p.39 / Chapter 5. --- Mortgage Guarantee Scheme --- p.40 / Chapter 6. --- Board of Director --- p.43 / Chapter 7. --- Performance of mortgage market --- p.44 / Chapter V. --- THE REACTION TOWARDS THE POWERFUL VEHICLE / Chapter 1. --- Banking Sector --- p.46 / Chapter 2. --- Home Buyers --- p.46 / Chapter 3. --- Property Developers --- p.49 / Chapter 4. --- Insurance Companies --- p.50 / Chapter 5. --- Hong Kong Monetary Authority and Hong Kong Mortgage Corporation --- p.50 / Chapter VI. --- RECOMMENDATION & CONCLUSION / Chapter 1. --- Recommendation --- p.53 / Chapter 1. --- "Setting of the Fixed Adjustable Rate of Mortgage (""FARM"")" --- p.53 / Chapter 2. --- Ways of Promoting the Debt Securities --- p.54 / Chapter 3. --- The Issue of Mortgage-Backed Securities (MBS) in the second stage of development --- p.55 / Chapter 4. --- Option in Debt Papers in US Dollars Denomination --- p.57 / Chapter 5. --- Clarification of the Top-up Loan Arrangement --- p.57 / Chapter 2. --- Conclusion --- p.58 / Chapter 3. --- Last Word --- p.59 / APPENDIX --- p.60 / BIBLIOGRAPHY --- p.106

Buying a home is for many households the financially most important purchase they will make. The choice of mortgage instrument is also of importance in that it will determine a household’s financial exposure. In the aftermath of the 2007–2008 financial crisis in the United States, the potential consequences for borrowers and the financial system became apparent in many countries. Even though the choice of mortgage is described as a very complex transaction, international studies have found that borrowers are less than optimally knowledgeable about the possible future consequences of their choice. This lack of knowledge has raised concern and prompted calls for more research on differences between mortgage markets and factors affecting consumers’ mortgage choice. This thesis answers this call by empirically exploring the Swedish case and by offering an expanded knowledge about factors that influence borrowers’ mortgage choice. The thesis consists of five papers, and, in most cases, interviews and questionnaires were used to collect the data, depending on which type of data collection was considered best suited to serve the purpose of the individual paper. A close reading approach was also applied in one of the papers. The findings indicate that in a Swedish setting, there are factors affecting borrowers’ mortgage choice that have not previously been fully explored in the literature: the media and bank advisors. During the period studied, a negative correlation existed between the media and the choice of fixed rate mortgages, whereas a positive correlation existed between bank advisors and the choice of fixed rate mortgages. The study on advice given by a bank advisor also shows the advocacy of a mix of fixed and adjustable mortgage rates. Further findings corroborate those of earlier international studies, such as the impact of income, education, financial literacy and loan-to-value ratios on mortgage choice. A general conclusion that can be drawn from the findings in the Swedish context is that the most financially vulnerable borrowers—those with lower income, lower education and/or higher loan-to-value ratios—are more likely to choose higher levels of fixed rate mortgages (or lower levels of adjustable rate mortgages). In doing so, they avoid exposing themselves to liquidity problems, which can be caused by increasing mortgage rates, and make future mortgage expenditures more predictable. These findings contradict much of the concern that both scholars and financial authorities have expressed about households’ choice of mortgage instrument. Hence, these findings are of importance not only to research on mortgage choice but also to policymakers and the financial industry. / <p>QC 20130924</p>

The mortgage system has been used for many years in many countries of the world. Although the system has undergone many changes over the passing years, the basics remain the same. So, it can be thought that the earlier systems form the basis of today&rsquo / s mortgage system even though it represents some differences in practice among the countries. However, this system is very new for Turkish financial market as compared with developed countries. The aim of this study is estimating the default and prepayment risk of mortgage contract and pricing the contract in emerging markets like Turkey. In this study, a classical option pricing technique based on Cox, Ingersoll and Ross [8] is used in order to evaluate Turkish fixed-rate mortgages. In this methodology, the spot interest rate and the house price are used as state variables and it is assumed that the termination decision of mortgage is driven by a economic rationale. Under this framework, the model evaluates the embedded options, namely prepayment and default options, and the future payments which corresponds to the mortgage monthly payments. Another aim of this study is the pricing of mortgage insurance policy which has not been used yet in Turkish mortgage market but thought as potential derivative in this market. Therefore, the model used in the study also provides values for mortgage insurance policy. The partial differential equation which is derived for the mortgage, its components and mortgage insurance policy does not have closed form solutions. To cope with this problem, an explicit finite difference method is used to solve the partial differential equation. Numerical results for the value of mortgage-related assets are determined under different economic scenarios. Results obtained in the basic economic scenario show that Turkish banks apply lower contract rates as compared with the optimal ones. This observation indicates that the primary mortgage market in Turkey is still in its infancy stage. Numerical results also suggest that it is beneficial for the lenders to have mortgage default insurance, especially for the high LTV ratio mortgages.