Mortgage-Backed securities (MBS) represent a financial instrument which "securitizes" residential first mortgages. Although the trading processes of MBS are similar to those of bonds, there are significant differences between the valuation methods of MBS and other securities. One of the sources of these differences is the possibility of prepayment of the mortgages. This study makes the distinction between full prepayment and partial prepayment. The results of this study suggest that full prepayment is directly related to housing market activities and partial prepayment is affected mainly by the prepayment provision in the mortgage contracts. / Business, Sauder School of / Graduate

This paper estimates both parametric and non-parametric proportional hazards models for a subset of Canadian mortgage-backed security data. The estimated parametric hazard function is then used to drive exogenous prepayments within an arbitrage-free model of the term structure of interest rates. Theoretical prices as well as option-adjusted spreads (OAS) are obtained for three different mortgage-backed securities using a Monte-Carlo simulation. Though no formal test is done to compare the ability of the different hazard models to explain observed market prices, the non-parametric baseline hazard is more consistent with the age-dependent prepayment provisions typical of most mortgage contracts in Canada. / Business, Sauder School of / Real Estate Division / Graduate

It is the purpose of this study to explore regional variation in the source, allocation, and characteristics of residential mortgage financing in British Columbia. In order to do so, the study compares and contrasts mortgage funds from two groups of communities. The two groups of communities are representative of the Greater Vancouver area and the outlying, 'smaller' or non-metropolitan communities. While the outlying municipalities are generally referred to as 'smaller' than the Vancouver municipalities, this is not necessarily the relevant characteristic. What is perhaps more important is that the Vancouver municipalities fall within a metropolitan region and the others do not. This study finds that significant regional variation in mortgage financing characteristics does not exist in all cases. Nonetheless, there does exist some variation which seems to be the result of two factors: (1) the variation in lender-type from the metropolitan area to the non-metropolitan community and (2) the relative price of housing in Greater Vancouver versus the non-metropolitan communities / Business, Sauder School of / Real Estate Division / Graduate

The aim of this thesis is to compare the causes, course and effects of the mortgage crisis and the subsequent financial crisis in the USA and in the Czech Republic in the years 2000-2012. Conclusions comparisons show that the impact of the crisis on the economy of the Czech Republic were milder mainly due to readiness of Czech banks. Furthermore, this work analyzes a model example of choice of parameters mortgage loan from the client's perspective, focusing on the assessment of the advantages of combination mortgages and savings products. Based on the results of this analysis, the combination can be recommended, but with regard to the rates of appreciation achieved when saving resources. If the condition of compensation refinancing costs by the difference in interest rates is satisfied, it is also possible recommended this financial instrument to a qualified client. Finally, we completed the image of the Czech mortgage market by comparing the classical mortgage products in offer of several banks.

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

published_or_final_version / Real Estate and Construction / Master / Master of Science in Real Estate and Construction

by Lam Suen, Tang Mun-suet. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1995. / Includes bibliographical references (leaves 60-61). / ABSTRACT --- p.iii / TABLE OF CONTENT --- p.v / LIST OF CHARTS/TABLES --- p.vii / CHAPTER / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- INTRODUCTION OF MORTGAGE-BACKED SECURITIES --- p.6 / What is Securitization --- p.6 / Types of Mortgage-backed Securities --- p.8 / Mortgage Pass-through Securities --- p.8 / Collateralized Mortgage Obligations --- p.9 / Stripped Mortgage-backed Securities --- p.11 / Chapter III. --- BENEFITS OF SECURITIZATION --- p.14 / Benefits to Issuers --- p.14 / Diversification of Funding Sources and Increased Liquidity --- p.14 / Cost Effective Source of Funds --- p.15 / Efficient Use of Capital --- p.15 / Rapid Portfolio Growth --- p.15 / Better Asset/Liability Management --- p.16 / Earning Enhancement --- p.16 / Benefits to Investors --- p.16 / Benefits to Borrowers --- p.17 / Implication of Securitization for Financial Market --- p.17 / Chapter IV. --- MODELING AND VALUATION OF MORTGAGE-BACKED SECURITIE& --- p.19 / Static Cash Flow Yield (SCFY) Analysis --- p.20 / Advantages and Limitations --- p.21 / Total Rate of return Scenario Analysis (SA) --- p.22 / Advantages and Limitations --- p.23 / Option Adjusted Spreads (OAS) --- p.24 / Advantages and Limitations --- p.26 / Chapter V. --- THE MORTGAGE-BACKED SECURITIES MARKET IN US --- p.27 / U.S. Capital Market --- p.27 / Market Structureof Mortgage-backed Securities in US --- p.28 / Mortgage Originators --- p.28 / Mortgage-backed Securities Issuers --- p.29 / Derivatives of Mortgage-backed Securities --- p.32 / Secondary Mortgage-backed Securities Market --- p.33 / Chapter VI. --- THE HONG KONG MORTGAGE-BACKED SECURITIES MARKET --- p.35 / Mortgage Pool --- p.35 / Characteristics of residential mortgage loans in Hong Kong --- p.35 / Lending policy of authorized institutions since 1989 --- p.37 / Development Of MBS --- p.39 / "Four Mortgage-backed, Bond Sales" --- p.40 / "Bank Of America (Asia) - May, 1994" --- p.40 / "Citibank's Homes-1 - July, 1994" --- p.41 / "Cheung Kong Holdings - September, 1994" --- p.42 / "Standard Chartered Bank's MARS - December, 1994" --- p.44 / Chapter VII. --- DISCUSSION ON HONG KONG MORTGAGED-BACKED SECURITIES MARKET --- p.46 / "Why is the Mortgage-backed, Securities Market Less Important in Hong Kong" --- p.46 / Uncertain Political Environment of Hong Kong --- p.46 / Hong Kong Residential Property Price Inflation --- p.48 / Limited Liquidity --- p.49 / Few Securities with Credit Ratings --- p.49 / Risks of Mortgage-backed Securities --- p.49 / Chapter VIII. --- RECOMMENDATIONS AND FUTURE OF HONG KONG MORTGAGE-BACKED SECURITIES MARKET --- p.55 / Recommendations for Hong Kong Mortgage-backed Securities Market --- p.55 / Credit Enhancement of Securitized Products --- p.55 / Better Market Infrastructure --- p.56 / Liquid Bond Markets --- p.57 / The Future Mortgage-backed Securities Market in Hong Kong --- p.58 / BIBLIOGRAPHY --- p.60

To value any fixed income security one needs to evaluate the discounted expected cash flows according to an arbitrage free interest rate model. In the case of mortgage-backed securities the future cash flows are uncertain due to mortgagors exercise of their prepayment options. The present project considers prepayments which result from interest rate dependent complete refinancing of mortgages in a pool. The rate of refinancing is modeled as an arbitrary, user defined function of current and past interest rates. This enables the inclusion of refinancing rates that depend on not only on the current level of interest rates but also on the trend of the interest rates and that may also exhibit burnout effects due to past periods of low interest rates. The resulting cash flows depend on the entire past of the path that the interest rates took to get to the current level. The Black-Derman-Toy arbitrage free binomial tree is used to model the underlying interest rates. This is a single-factor market price consistent model which also allows the specification of the observed volatilities. Monte Carlo methodology is used to simulate random paths in the interest rate tree to evaluate the cash flows along the path. A computer program written in MAPLE implements the entire process.

This paper traces the effects which federal policy has had on home mortgage finance in the United States. In the past, the phases of intervention have been described as 1) the New Deal responses to the Great Depression, 2) the creation of the Government- Sponsored Enterprises and promotion of the secondary market, and 3) the deregulation of the banking industry. This paper uses the historical backdrop to examine the current era of intervention, including the Making Home Affordable initiative. The paper concludes with policy recommendations that tie past experience with current problems and explores shared equity homeownership as a sustainable model for the future. / text

Hipotekos sąvoka yra kilusi iš graikų kilmės žodžio „hypotheke“, reiškiančio daikto įkeitimą, kai įkeičiamas daiktas paliekamas valdyti skolininkui. Nors įkeitimo teisės gimtine yra laikomas Babilonas, hipotekos institutas vakarų teisės tradicijos valstybėse atsirado kaip romėnų teisės recepcijos padarinys. Kaip ir Senovės Romoje, Lietuvoje hipoteka perėjo keletą raidos etapų – nuo 1818 m. Ipotekos įstatų priėmimo iki reformuotos hipotekos sistemos įgyvendinimo šiuo metu galiojančiuose CK ir CPK. Nors įsigaliojus naujiems civiliniams įstatymams hipotekai buvo priskirtas daiktinis teisinis režimas, dvejopa nekilnojamojo turto įkeitimo teisės prigimtis neleidžia jos laikyti griežtai daiktine teise, todėl magistro baigiamajame darbe analizuojama hipotekos teisinės prigimties problematika, nagrinėjamas hipotekos, kaip daiktinio prievolių įvykdymo užtikrinimo būdo, santykis su kitomis prievolių užtikrinimo priemonėmis. Darbe prieinama išvados, jog daiktiniai hipotekos požymiai lemia hipotekos patikimumą, nes hipotekos objektu yra materialus daiktas, kuris išlieka ir tuomet, kai skolininkas miršta, išlaiko savo vertę, kai skolininkas tampa nemokus. Hipoteka galima užtikrinti būsimos, preliminarios sutarties įvykdymą, hipotekos kreditorius gali nukreipti skolos išieškojimą į įkeistą turtą, nepriklausomai nuo to, ar jis yra pas skolininką, ar pas trečiuosius asmenis, nekilnojamojo turto realizavimas praktiškai visados yra garantuotas, be to, hipotekos kreditoriaus reikalavimai iš... [to full text] / The concept of mortgage originated from a Greek word “hypotheke” that means a thing in mortgage but the thing is still left for the owner to posses. Although the homeland of lien is considered to be Babylon, the legal institute of mortgage appeared as the result of Roman law reception in the states of western law tradition. In Lithuania, like in the ancient Rome, mortgage progressed from one developmental stage to another, i.e. from 1818 when the regulations of mortgage were accepted till the implementation of reformed mortgage system in Civil Code and Code of Civil Procedure that are available now. However when new civil laws became operative, a material legal regime was attached to mortgage, the dual nature of mortgage law cannot be considered strictly the right in rem, so in the Master thesis one analyses the topic of mortgage legal nature, researches mortgage, as a real security device, and relationship with other security devices. In the work one makes conclusions that material features of mortgage determine the reliability of mortgage, because the object of mortgage is a material thing that remains even when a debtor dies and sustains its value when a debtor becomes insolvent. Mortgage can assure the fulfillment of future, tentative agreement, the creditor of a hypothec can direct the recovery to a mortgaged property, independent of the fact whether a debtor or third party has it, the realization of realty is practically always guaranteed, moreover, the hypothec... [to full text]