HOUSING FINANCE IN TRANSITION ECONOMIES

Size: px
Start display at page:

Download "HOUSING FINANCE IN TRANSITION ECONOMIES"

Transcription

1 HOUSING FINANCE IN TRANSITION ECONOMIES OECD Workshop Warsaw, Poland December 5-6, Loïc Chiquier The World Bank 1

2 Challenge in Transition Economies! Key for growth, poverty, wealth (75 wealth), social stability (75-90% of household! Pressure from urbanization and demographics (stock( stock or flow issue?)! HF to become larger part of the financial system and contribute to its stability and profitability! Role of the state not in lending, but improving market infrastructure, regulation, targeted subsidies 2 2

3 Countries Over 50% Urban Over 50 % Reaching 50% Least Urbanized 3 3

4 Pre-Requisites to a Sizeable Housing Finance System! Macro-economic stability (inflation, real rate, EU convergence)! Workable legal framework (registered property rights, effective foreclosure, co-ownership ownership problems)! Efficient housing markets to finance (land use, urban and construction norms, taxation, RE industry professionals: developers, appraisers, realtors, brokers, etc.)! Integration within the financial system (liberalized credit sector, specialized/earmarked funds, development of fixed income securities, fitting regulatory /oversight frame) 4 4

5 Often small, instable, fragmented mortgage markets Mortgage stock < 5%-10% GDP (38% EU, 65% US) Poor access to HF services for households (if not urban professionals), delayed access to ownership, incremental or informal housing, limited impact of RE on growth Lenders / regulators perceive relative large risk exposure and difficult low profitability (vs. other credit sectors) Limited economic/cultural demand from borrowers (mortgaged home, informal income, tax avoidance) Perceived need for more subsidies (fiscally costly) but oriented competition 5 5 subsidized loans run against market-oriented competition

6 Poland Hun gary Housing Loans Outstanding as a Percentage of GDP 6 Denmark UK USA Germany Canada Austria Spain Chile Italy Argentina Czech Rep Source: Housing Finance International, December 2000 Percentage

7 Underdeveloped Mortgage Markets?! Slow development of mortgage securities Dominant deposit-base funding model (when very liquid banks), acceptable market risks with variable rate credits (contrast with $ 2.6 trillion MBS in the US in 1999) Yet more long-term fixed-rate funding opportunities with the diversification needs of institutional investors (notably pension funds) Complex vs. simple variants of mortgage securities (different ways to manage market risks and equity, but also different pre-requisites, requisites, objectives, costs of funds) 7 7

8 Main Housing Finance Related Risks Credit Risk (losses due to default: capacity and will) Liquidity Risk (fear cash need) and Market Risk (impact of a change of interest rates on assets, liabilities, net interest results) Political Risk (including change of legal and regulatory system affecting the overall mortgage portfolio) Operation Risk (inadequate organization, controls, IS, corporate governance) Agent risk (misuse funds by intermediaries) for 2 nd -tier institutions (insurance, securitization, liquidity facilities) 8 8

9 Management of Market and Liquidity Risks (I) Impact of changing interest rates on the value of assets & liabilities, and on net interest results (ex: S&L crisis) Various sub-categories: commitment risk, pipeline risk, prepayment risk, foreign exchange risk Different measure methods, hypothesis, tolerance levels More difficult context in emerging countries: volatile interest rates, no hedge derivatives, limited yield curve 9 9

10 Management of Market and Liquidity Risks (II)! Adjust the credit design according to the funding structure (adjustable / discretionary rates, hard-currency loans: more credit risks)! Manage liquidity needs and cash-flows (adequate capital, funding sources, treasury department), determine ALM policy! Possible access to liquidity facility (simple, residual market risks)! Adjust duration matching, use hedging derivatives! Issue mortgage securities (securitization, mortgage bonds) although no panacea (cost of funds, preconditions)! Price residual risks through the credit (+ prepayment fees) 10 10

11 Management of Mortgage Credit Risks (I) Residential mortgages: expected excellent risk and attractive asset (US NPL > 3 months 0.3% -3.7%) but different perception in countries where severe recent crisis (NPL > 20%: see next slide about Colombia, Mexico, Thailand, etc.) Crisis triggers (on default probability and/or loss severity): Economic crisis: unemployment, lower housing values, negative equity (disincentives to repay) Financial shock, higher rates passed to variable rate credits Unsound amortization schemes, lack of prudential lending standards and regulations Ineffective foreclosure (delays, appeals, adverse judiciary) Spreading culture of non-payment (fueled by political risk) 11 payment (fueled by political risk) 11

12 Jan-01 Mar-01 May-01 Jul-01 Sep-01 Nov % 20.0% 15.0% 10.0% 5.0% 0.0% NPL Mortgage Colombia 12 Nov-00 Sep -00 Jul-00 May-00 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-99 Mar-99 Jan-99 Nov-98 Sep-98 Jul-98 May-98 Mar-98 Jan-98

13 Management of Credit Risks (II) Expansion and deepening to larger-scale portfolios (including lower-income) if well-managed credit risks! Optimal credit design: risk-adjusted profitability of the lender vs. affordability of borrower, choice of interest rate and amortization scheme (including indexation)! Sound mortgage lending standards (underwriting, servicing)! Sufficient, effective and appraised mortgage collateral, and search for alternative collateral (pension, third-party, etc)! Access to reliable incomes, capacity and willing to repay, automated underwriting, credit information systems (credit history, past rental payments, relevancy of scoring models) 13 history, past rental payments, relevancy of scoring models) 13

14 Management of Credit Risks (III)! Risk adjusted pricing, modified credit policy (term, LTV)! Related insurance products! Capacity to monitor pool performance (needed for SMM)! Active debt recovery capacities (prevention, menu of restructuring/waivers/foreclosure/resale/leasing solutions)! Appropriate information of borrowers (code conduct?)! Capacity building of lending institutions (capital, expertise)! Development of partial credit insurance / guarantee schemes (risk allocation, actuarial premium, standards, moral hazard) 14 (risk allocation, actuarial premium, standards, moral hazard) 14

15 Examples of World Bank Projects Jordan: liquidity facility issuing bonds to refinance lenders, lending standards, robust catalyst of more affordable mortgage markets Colombia: restructure distressed S&Ls industry (management of large market and credit risks, regulations, subsidies, securities) Mexico: access to bond market, separate subsidies from credit, management of risks, prudential norms, credit and MBS guarantees Latvia: pilot credit guarantees for homeowner associations, lower down-payment for homeowners, reverse mortgage loans Peru: registration /formalization of property titles ( dead assets) Algeria: assistance to lenders (training, funding, insurance), regularizing titles, enhancing mortgage rights 15 15

Introduction to Mortgage Insurance. Mexico City November 2003

Introduction to Mortgage Insurance. Mexico City November 2003 Introduction to Mortgage Insurance Mexico City November 2003 Agenda United Guaranty Mortgage guaranty insurance Industry history Product structure and risk factors Advantages of mortgage insurance Process

More information

Developing Kenya s Mortgage Market

Developing Kenya s Mortgage Market Developing Kenya s Mortgage Market Simon Walley Senior Housing Finance Specialist World Bank 17 February, 2011 - Nairobi Outline Rationale for developing the mortgage market Mortgage Market Summary Housing

More information

Regulation of Foreign Currency Mortgage Loans. - the case of transition countries in Central and Eastern Europe

Regulation of Foreign Currency Mortgage Loans. - the case of transition countries in Central and Eastern Europe Regulation of Foreign Currency Mortgage Loans - the case of transition countries in Central and Eastern Europe 4 th World Bank conference on Housing Finance in Emerging Markets Washington, D.C., May 26-27,

More information

Residential Mortgage Finance and Housing Markets in Russia February 9, 2004. Britt Gwinner The World Bank

Residential Mortgage Finance and Housing Markets in Russia February 9, 2004. Britt Gwinner The World Bank Residential Mortgage Finance and Housing Markets in Russia February 9, 2004 Britt Gwinner The World Bank 1 Overview of Presentation Two Sections: 1. Residential Mortgage Finance Internationally 2. Mortgage

More information

PURCHASE MORTGAGE. Mortgage loan types

PURCHASE MORTGAGE. Mortgage loan types PURCHASE MORTGAGE Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation

More information

Public Policy and Innovation: Partnering with Capital Markets through Securitization. Antonio Baldaque da Silva November 2007

Public Policy and Innovation: Partnering with Capital Markets through Securitization. Antonio Baldaque da Silva November 2007 Public Policy and Innovation: Partnering with Capital Markets through Securitization Antonio Baldaque da Silva November 2007 Agenda 1. Motivation: Innovation and Public Policy 2. Traditional tools 3. Alternatives:

More information

Financing Residential Real Estate

Financing Residential Real Estate Financing Residential Real Estate Chapter 1: Finance and Investment Borrowing Money to Buy a Home Investments and Returns Types of Investments Ownership Investments Debt Investments Securities Investment

More information

Breakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans?

Breakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans? Breakout Session 1: Mortgage Lenders How can we Incentivize Lenders to Grant more Housing Loans? Dr. Friedemann Roy IFC Financial Institutions Group Durban October 27, 2015 Work program for break-out session

More information

SEB s Swedish Residential Mortgage Lending and Covered Bonds. Stockholm September, 2013

SEB s Swedish Residential Mortgage Lending and Covered Bonds. Stockholm September, 2013 SEB s Swedish Residential Mortgage Lending and Covered Bonds Stockholm September, 2013 Contents SEB s Residential Mortgage Lending p.3 Asset Quality p.19 Cover Pool and Covered Bond Funding p.24 2 SEB

More information

THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS. Mamiko Yokoi-Arai

THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS. Mamiko Yokoi-Arai THE LOW INTEREST RATE ENVIRONMENT AND ITS IMPACT ON INSURANCE MARKETS Mamiko Yokoi-Arai Current macro economic environment is of Low interest rate Low inflation and nominal wage growth Slow growth Demographic

More information

The financial turbulence and Norway what lessons can be drawn? Governor Øystein Olsen Eiendomsdagene Norefjell 19 January 2012

The financial turbulence and Norway what lessons can be drawn? Governor Øystein Olsen Eiendomsdagene Norefjell 19 January 2012 The financial turbulence and Norway what lessons can be drawn? Governor Øystein Olsen Eiendomsdagene Norefjell 19 January 1 The run-up to the financial crisis 1. Sharp rise in debt and asset prices low

More information

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer

More information

NMRC AND THE NIGERIAN MORTGAGE MARKET:

NMRC AND THE NIGERIAN MORTGAGE MARKET: NMRC AND THE NIGERIAN MORTGAGE MARKET: An Intermediate Step to a full Secondary Mortgage Market 2014 CAPITAL MARKET COMMITTEE (CMC) RETREAT & CONFERENCE Sonnie Ayere Interim CEO, NMRC Chairman, Dunn Loren

More information

Development of mortgage lending in Russia

Development of mortgage lending in Russia Development of mortgage lending in Russia Development of Russian mortgage market: 2007-2012 Mortgage origination, bln. (RUB/$) Mortgage share of residential market turnover 1000 900 800 700 600 500 400

More information

Designing The Ideal Investment Policy Presented To The Actuaries Club of the Southwest & the Southeastern Actuarial Conference

Designing The Ideal Investment Policy Presented To The Actuaries Club of the Southwest & the Southeastern Actuarial Conference Designing The Ideal Investment Policy Presented To The Actuaries Club of the Southwest & the Southeastern Actuarial Conference Presented by: Greg Curran, CFA & Michael Kelch, CFA AAM - Insurance Investment

More information

KBW Mortgage Finance Conference. June 2, 2015

KBW Mortgage Finance Conference. June 2, 2015 KBW Mortgage Finance Conference June 2, 2015 Forward Looking Statements This presentation contains forward looking statements within the meaning of the safe harbor provisions of the Private Securities

More information

Comparative Study of Frameworks to protect the Long Term Interests of Pension Funds Investing in Public-Private Partnerships

Comparative Study of Frameworks to protect the Long Term Interests of Pension Funds Investing in Public-Private Partnerships EMAIL contact@fosterinfrastructure.com WEB www.fosterinfrastructure.com Comparative Study of Frameworks to protect the Long Term Interests of Pension Funds Investing in Public-Private Partnerships Pty

More information

Lesson 13: Applying for a Mortgage Loan

Lesson 13: Applying for a Mortgage Loan 1 Real Estate Principles of Georgia Lesson 13: Applying for a Mortgage Loan 2 Choosing a Lender Types of lenders Types of lenders include: savings and loans commercial banks savings banks credit unions

More information

Best Practices in Asset Liability Management

Best Practices in Asset Liability Management Best Practices in Asset Liability Management Frank Wilary Principal Wilary Winn LLC September 22, 2014 1 Topics Covered Best practices related to ALM modeling Best practices related to managing the ALM

More information

Financing Residential Real Estate: SAFE Comprehensive 20 Hours

Financing Residential Real Estate: SAFE Comprehensive 20 Hours Financing Residential Real Estate: SAFE Comprehensive 20 Hours COURSE ORGANIZATION and DESIGN Roy L. Ponthier, Ph.D., Ed.D., CDEI, DREI Executive Director Module 1: Finance and Investment Mortgage loans

More information

Mortgages and Mortgage -Backed Securiti curi es ti Mortgage ort gage securitized mortgage- backed securities (MBSs) Primary Pri mary Mortgage Market

Mortgages and Mortgage -Backed Securiti curi es ti Mortgage ort gage securitized mortgage- backed securities (MBSs) Primary Pri mary Mortgage Market Mortgages and Mortgage-Backed Securities Mortgage Markets Mortgages are loans to individuals or businesses to purchase homes, land, or other real property Many mortgages are securitized Many mortgages

More information

QBE INSURANCE GROUP Annual General Meeting 2009. All amounts in Australian dollars unless otherwise stated.

QBE INSURANCE GROUP Annual General Meeting 2009. All amounts in Australian dollars unless otherwise stated. Annual General Meeting 2009 All amounts in Australian dollars unless otherwise stated. John Cloney Chairman 2 Results of proxy voting A total of 4,874 valid proxy forms were received. The respective votes

More information

A Heavenly Match - The Danish mortgage model in an international perspective. Jesper Berg Managing director, Nykredit Bank Iceland, July 1, 2014

A Heavenly Match - The Danish mortgage model in an international perspective. Jesper Berg Managing director, Nykredit Bank Iceland, July 1, 2014 A Heavenly Match - The Danish mortgage model in an international perspective Jesper Berg Managing director, Nykredit Bank Iceland, July 1, 2014 Game Plan The Danish Mortgage model 1...makes sense in a

More information

COUNTRIES. Financial Sector Issues and Analysis Seminar. The World Bank. October 20-24, 2003. The World Bank/ FSE Operations and Policy

COUNTRIES. Financial Sector Issues and Analysis Seminar. The World Bank. October 20-24, 2003. The World Bank/ FSE Operations and Policy HOUSING FINANCE IN DEVELOPING COUNTRIES Financial Sector Issues and Analysis Seminar The World Bank October 20-24, 2003 Olivier Hassler The World Bank/ FSE Operations and Policy Ohassler@worldbank.org

More information

Structured Financial Products

Structured Financial Products Structured Products Structured Financial Products Bond products created through the SECURITIZATION Referred to the collection of Mortgage Backed Securities Asset Backed Securities Characteristics Assets

More information

Portrait of the Crisis: Risks and Opportunities for Investors

Portrait of the Crisis: Risks and Opportunities for Investors Portrait of the Crisis: Risks and Opportunities for Investors Hung Tran IIF, Counsellor and Senior Director of Capital Markets and Emerging Markets Policy Garanti Masters Private Banking Conference Istanbul,

More information

3/22/2010. Chapter 11. Eight Categories of Bank Regulation. Economic Analysis of. Regulation Lecture 1. Asymmetric Information and Bank Regulation

3/22/2010. Chapter 11. Eight Categories of Bank Regulation. Economic Analysis of. Regulation Lecture 1. Asymmetric Information and Bank Regulation Chapter 11 Economic Analysis of Banking Regulation Lecture 1 Asymmetric Information and Bank Regulation Adverse Selection and Moral Hazard are the two concepts that underlie government regulation of the

More information

Conceptual Framework: What Does the Financial System Do? 1. Financial contracting: Get funds from savers to investors

Conceptual Framework: What Does the Financial System Do? 1. Financial contracting: Get funds from savers to investors Conceptual Framework: What Does the Financial System Do? 1. Financial contracting: Get funds from savers to investors Transactions costs Contracting costs (from asymmetric information) Adverse Selection

More information

A leveraged. The Case for Leveraged Loans. Introduction - What is a Leveraged Loan?

A leveraged. The Case for Leveraged Loans. Introduction - What is a Leveraged Loan? PENN Capital Management The Navy Yard Corporate Center 3 Crescent Drive, Suite 400 Philadelphia, PA 19112 Phone: 215-302-1501 www.penncapital.com For more information: Christian Noyes, Senior Managing

More information

Investment Analysis & Portfolio Management. Naveed Shahid, ASA, APSA Head of Investments Department EFU Life Assurance Ltd

Investment Analysis & Portfolio Management. Naveed Shahid, ASA, APSA Head of Investments Department EFU Life Assurance Ltd Investment Analysis & Portfolio Management Naveed Shahid, ASA, APSA Head of Investments Department EFU Life Assurance Ltd Course Description: Portfolio management: Characteristics, markets and traditional

More information

Financial-Institutions Management. Solutions 6

Financial-Institutions Management. Solutions 6 Solutions 6 Chapter 25: Loan Sales 2. A bank has made a three-year $10 million loan that pays annual interest of 8 percent. The principal is due at the end of the third year. a. The bank is willing to

More information

NEIGHBORHOOD LAND BANK

NEIGHBORHOOD LAND BANK NEIGHBORHOOD LAND BANK Purpose: Contribute to the community stabilization, revitalization and preservation of San Diego County s communities, particularly San Diego s low and moderate income communities,

More information

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan. MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that

More information

HMBS Overview. Ginnie Mae s Program to Securitize Government Insured Home Equity Conversion Mortgages

HMBS Overview. Ginnie Mae s Program to Securitize Government Insured Home Equity Conversion Mortgages HMBS Overview Ginnie Mae s Program to Securitize Government Insured Home Equity Conversion Mortgages Table of Contents Tab A: Program Overview Tab B: Home Equity Conversion Mortgage (HECM) Trends Tab C:

More information

Jornadas Economicas del Banco de Guatemala. Managing Market Risk. Max Silberberg

Jornadas Economicas del Banco de Guatemala. Managing Market Risk. Max Silberberg Managing Market Risk Max Silberberg Defining Market Risk Market risk is exposure to an adverse change in value of financial instrument caused by movements in market variables. Market risk exposures are

More information

Frequently Asked Questions About Trust Deed Investing and Sterling Pacific Financial

Frequently Asked Questions About Trust Deed Investing and Sterling Pacific Financial Frequently Asked Questions About Trust Deed Investing and Sterling Pacific Financial This document is presented in four categories: FAQs about Trust Deed Investments (this page) FAQs about investing with

More information

Comments by Edward Golding at the Wharton School, University of Pennsylvania Conference on Fixing the Housing Finance System, April 27, 2005.

Comments by Edward Golding at the Wharton School, University of Pennsylvania Conference on Fixing the Housing Finance System, April 27, 2005. Comments by Edward Golding at the Wharton School, University of Pennsylvania Conference on Fixing the Housing Finance System, April 27, 2005. Freddie Mac s and Fannie Mae s Contribution to the Economy

More information

SUSTAINABLE HOUSING FINANCE

SUSTAINABLE HOUSING FINANCE SUSTAINABLE HOUSING FINANCE Recovery, Sustainability, and Evolution: Perspectives on the Real Estate Economy 26 June, Geneva Mark Weinrich Manager International Relations & Senior Economist Association

More information

A PRIMER ON THE SECONDARY MORTGAGE MARKET

A PRIMER ON THE SECONDARY MORTGAGE MARKET ONE FANEUIL HALL MARKETPLACE BOSTON, MA 02109 TEL. 617 367-4390 FAX 617 720-0918 WWW.CITYRESEARCH.COM A PRIMER ON THE SECONDARY MORTGAGE MARKET National Community Development Initiative Meetings New York,

More information

Development of consumer credit in China

Development of consumer credit in China Development of consumer credit in China Shen Bingxi and Yan Lijuan 1 Summary Consumer credit particularly personal consumer loans such as home mortgages and loans financing purchases of automobiles and

More information

Quarterly Financial Report

Quarterly Financial Report CANADA MORTGAGE AND HOUSING CORPORATION Quarterly Financial Report THIRD QUARTER September 30, (Unaudited) MANAGEMENT S DISCUSSION AND ANALYSIS TABLE OF CONTENTS MANAGEMENT S DISCUSSION AND ANALYSIS 3

More information

a. If the risk premium for a given customer is 2.5 percent, what is the simple promised interest return on the loan?

a. If the risk premium for a given customer is 2.5 percent, what is the simple promised interest return on the loan? Selected Questions and Exercises Chapter 11 2. Differentiate between a secured and an unsecured loan. Who bears most of the risk in a fixed-rate loan? Why would bankers prefer to charge floating rates,

More information

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 2: An Overview of the Financial

More information

A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance.

A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance. A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance. When you agree to a mortgage, you enter into a legal

More information

Homeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA)

Homeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA) Homeownership Preservation Policy for Residential Mortgage Assets Section 110 of the Emergency Economic Stabilization Act (EESA) requires that each Federal property manager that holds, owns, or controls

More information

Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal

Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal Secure and Fair Enforcement for Mortgage Licensing Act Title V of P.L. 110-289, the Secure

More information

Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87

Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87 Central Bank of Ireland Macro-prudential policy for residential mortgage lending Consultation Paper CP87 An initial assessment from Genworth Financial The Central Bank ( CB ) published a consultation paper

More information

Federal Home Loan Bank of San Francisco Announces Second Quarter Operating Results

Federal Home Loan Bank of San Francisco Announces Second Quarter Operating Results News Release Federal Home Loan Bank of San Francisco Announces Second Quarter Operating Results San Francisco, The Federal Home Loan Bank of San Francisco today announced that its net income for the second

More information

SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS. OECD Secretariat

SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS. OECD Secretariat SURVEY OF INVESTMENT REGULATION OF PENSION FUNDS OECD Secretariat Methodological issues The information collected concerns all forms of quantitative portfolio restrictions applied to pension funds in OECD

More information

Summary of the Housing and Economic Recovery Act of 2008

Summary of the Housing and Economic Recovery Act of 2008 Summary of the Housing and Economic Recovery Act of 2008 On July 30, President Bush signed major housing legislation, HR 3221, the Housing and Economic Recovery Act of 2008. The bill restructures regulation

More information

List of legislative acts

List of legislative acts List of legislative acts BRRd : d irective 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment

More information

I. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market)

I. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market) University of California, Merced EC 121-Money and Banking Chapter 2 Lecture otes Professor Jason Lee I. Introduction In economics, investment is defined as an increase in the capital stock. This is important

More information

Residential Mortgage Presentation (Financial Figures are as of June 30, 2007)

Residential Mortgage Presentation (Financial Figures are as of June 30, 2007) Residential Mortgage Presentation (Financial Figures are as of June 30, 2007) August 9, 2007 (Revised as to slide 29) It should be noted that this presentation and the remarks made by AIG representatives

More information

Controls and accounting policies

Controls and accounting policies Controls and accounting policies Controls and procedures Management s responsibility for financial information contained in this Annual Report is described on page 92. In addition, the Bank s Audit and

More information

Danish mortgage bonds provide attractive yields and low risk

Danish mortgage bonds provide attractive yields and low risk JANUARY 2015 Danish mortgage bonds provide attractive yields and low risk New European Union legislation favours Danish mortgage bonds KEY CONCEPTS New legislation favours Danish mortgage bonds Attractive

More information

Consultation Paper CP11/16 Underwriting standards for buy-tolet mortgage contracts

Consultation Paper CP11/16 Underwriting standards for buy-tolet mortgage contracts Consultation Paper CP11/16 Underwriting standards for buy-tolet mortgage contracts March 2016 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered office:

More information

Pioneer Multi-Asset Ultrashort Income Fund

Pioneer Multi-Asset Ultrashort Income Fund Pioneer Multi-Asset Ultrashort Income Fund A diversified, investment grade-focused approach to floating rate investing MAFRX INVESTOR GUIDE Pioneer Multi- Asset Ultrashort Income Fund* Share Class A C

More information

MORTGAGE DEFAULT INSURANCE

MORTGAGE DEFAULT INSURANCE MORTGAGE DEFAULT INSURANCE Workshop with PC: Human Settlements Presenter: Ulrike Rwida Public Finance, National Treasury 17 April 2013 Contents Profile of housing in South Africa New housing supply trends

More information

Reverse Mortgage- Growing Market in India

Reverse Mortgage- Growing Market in India Reverse Mortgage- Growing Market in India By Singhal, Saket & Jain, Amit Abstract With National Housing Bank coming up with the guidelines for Reverse Mortgage Products and some banks offering the product

More information

Greek banks and corporate funding costs

Greek banks and corporate funding costs NATIONAL BANK OF GREECE Greek banks and corporate funding costs January 214 Paul Mylonas CRO & Chief Economist National Bank of Greece NBG: ECONOMIC ANALYSIS DEPARTMENT Economic Analysis Department Roadmap

More information

Infla tion-indexed Securities

Infla tion-indexed Securities 2008 AGI-Information Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. Infla tion-indexed Securities Bonds, Swaps and Other Derivatives

More information

Residential Mortgage Finance. Early American Mortgages. Early Mortgage Lenders

Residential Mortgage Finance. Early American Mortgages. Early Mortgage Lenders Residential Mortgage Finance Early American Mortgages Mortgages before the Great Depression Generally were interest only (non- amortizing) loans Had Loan to Value Ratios under 50 % Were short term loans

More information

A Strategic Approach to Residential Mortgage Lending

A Strategic Approach to Residential Mortgage Lending A Strategic Approach to Residential Mortgage Lending Presented by Tracy Jean Ashfield Strategic Mortgage Solutions The Consulting and Training Division of Prime Alliance Solutions, Inc. October 19, 2009

More information

(Table 2.2). General account assets amounted to $3.5 trillion in 2010, up 4 percent from 2009.

(Table 2.2). General account assets amounted to $3.5 trillion in 2010, up 4 percent from 2009. 2ASSETS Assets held by life insurers back the companies life, annuity, and health liabilities. Accumulating these assets via the collection of premiums from policyholders and earnings on investments provides

More information

Household wealth and retirement savings

Household wealth and retirement savings Household wealth and retirement savings What we have learned from a joint research with OECD and OEE Daniele Fano Head of the Pioneer Global Asset Management Unit Introduction Retirement is one of the

More information

Fourth OECD Workshop on Housing Finance in Transition Economies

Fourth OECD Workshop on Housing Finance in Transition Economies DIRECTION DES AFFAIRES FINANCIERES ET DES ENTREPRISES DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS Fourth OECD Workshop on Housing Finance in Transition Economies 14-15 December 2004, Paris Provisional

More information

Bank of Ghana Monetary Policy Report. Financial Stability Report

Bank of Ghana Monetary Policy Report. Financial Stability Report BANK OF GHANA E S T. 1 9 5 7 Bank of Ghana Monetary Policy Report Financial Stability Report Volume 5: No.1/2013 February 2013 5.0 Introduction Conditions in global financial markets have improved significantly

More information

Investment and Investment Finance in Croatia, how can the EIB contribute? Dario Scannapieco and Debora Revoltella European Investment Bank

Investment and Investment Finance in Croatia, how can the EIB contribute? Dario Scannapieco and Debora Revoltella European Investment Bank Investment and Investment Finance in Croatia, how can the EIB contribute? Dario Scannapieco and Debora Revoltella European Investment Bank 24 March 2014 Outline EU and Croatia key challenges The Investment

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

Summary of FY2014 FHA Annual Report to Congress on the Financial Health of the Mutual Mortgage Insurance Fund. November 17, 2014

Summary of FY2014 FHA Annual Report to Congress on the Financial Health of the Mutual Mortgage Insurance Fund. November 17, 2014 Summary of FY2014 FHA Annual Report to Congress on the Financial Health of the Mutual Mortgage Insurance Fund November 17, 2014 Summary 1. The MMI Fund is now positive, having improved by ~$21 billion

More information

Participating Policy Fact Sheet

Participating Policy Fact Sheet Participating Policy Fact Sheet This Fact Sheet helps you better understand the factors that may affect the Reversionary Bonus and Terminal Bonus of your Fortune Guard Life Insurance 1 and/or Fortune Protector

More information

Mortgage Loan Conduit & Securitization Two Harbors Investment Corp. November 4, 2015

Mortgage Loan Conduit & Securitization Two Harbors Investment Corp. November 4, 2015 Two Harbors Investment Corp. November 4, 2015 Two Harbors Investment Corp. is proud to present a webinar titled: Mortgage Loan Conduit and Securitization. Periodic webinars from Two Harbors will provide

More information

Appendix D: Questions and Answers Section 120. Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans

Appendix D: Questions and Answers Section 120. Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans 1. When do 1-to-4 family residential mortgages receive 100% risk weight? Any 1-to-4 family residential mortgage loan that

More information

Key learning points I

Key learning points I Key learning points I What do banks do? Banks provide three core banking services Deposit collection Payment arrangement Underwrite loans Banks may also offer financial services such as cash, asset, and

More information

Appendix B: Cash Flow Analysis. I. Introduction

Appendix B: Cash Flow Analysis. I. Introduction I. Introduction The calculation of the economic value of the MMI Fund involves the estimation of the present value of future cash flows generated by the existing portfolio and future books of business.

More information

Chapter 10. The Good Old Days. The New Way. Secondary Markets. Depository Lenders in the Primary Market. Nondepository Lenders in the Primary Market

Chapter 10. The Good Old Days. The New Way. Secondary Markets. Depository Lenders in the Primary Market. Nondepository Lenders in the Primary Market The Good Old Days Chapter 10 The Secondary Mortgage Market Banks and Savings and Loans made loans and held these loans in portfolio The interest paid on the loan was use to pay interest to the depositors

More information

Chapter 2d Utah High Cost Home Loan Act

Chapter 2d Utah High Cost Home Loan Act Chapter 2d Utah High Cost Home Loan Act 61-2d-101 Title. This chapter is known as the "Utah High Cost Home Loan Act." 61-2d-102 Definitions. As used in this part: (1) "Accelerate" means a demand for immediate

More information

CIF RISK DASHBOARD CTF-SCF Joint Meeting October 29, 2013 1

CIF RISK DASHBOARD CTF-SCF Joint Meeting October 29, 2013 1 15 10 5 0 CIF RISK DASHBOARD CTF-SCF Joint Meeting October 29, 2013 1 BACKGROUND The CTF and SCF Trust Fund Committees approved the revised Tier 1 risks and associated risk mitigation measures for the

More information

GOLDMAN SACHS VARIABLE INSURANCE TRUST

GOLDMAN SACHS VARIABLE INSURANCE TRUST GOLDMAN SACHS VARIABLE INSURANCE TRUST Institutional and Service Shares of the Goldman Sachs Money Market Fund (the Fund ) Supplement dated July 29, 2015 to the Prospectuses and Summary Prospectuses, each

More information

Title XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: "Mortgage Reform and Anti-Predatory Lending Act"

Title XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: Mortgage Reform and Anti-Predatory Lending Act Title XIV - Mortgage Reform and Anti-Predatory Lending Act Short title: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A, B, C, and E are designated as Enumerated Consumer Law under the Bureau

More information

REPORT TO: THE SPECIAL MEETING OF THE MORAY COUNCIL ON 12 FEBRUARY 2015 TREASURY MANAGEMENT STRATEGY STATEMENT AND PRUDENTIAL INDICATORS

REPORT TO: THE SPECIAL MEETING OF THE MORAY COUNCIL ON 12 FEBRUARY 2015 TREASURY MANAGEMENT STRATEGY STATEMENT AND PRUDENTIAL INDICATORS PAGE: 1 REPORT TO: THE SPECIAL MEETING OF THE MORAY COUNCIL ON 12 FEBRUARY 2015 SUBJECT: BY: TREASURY MANAGEMENT STRATEGY STATEMENT AND PRUDENTIAL INDICATORS CORPORATE DIRECTOR (CORPORATE SERVICES) 1.

More information

The GSEs Are Helping to Stabilize an Unstable Mortgage Market

The GSEs Are Helping to Stabilize an Unstable Mortgage Market Update on the Single-Family Credit Guarantee Business Rick Padilla Director, Corporate Relations & Housing Outreach The Changing Economy: The New Community Lending Environment June 1, 29 The GSEs Are Helping

More information

Request for Information Regarding an Initiative to Promote Student Loan Affordability

Request for Information Regarding an Initiative to Promote Student Loan Affordability This Request for Information is scheduled to be published to the Federal Register in late February. In the meantime, please send comments via email to studentloanaffordability@cfpb.gov Billing Code: 4810-AM-P

More information

An Alternative Way to Diversify an Income Strategy

An Alternative Way to Diversify an Income Strategy Senior Secured Loans An Alternative Way to Diversify an Income Strategy Alternative Thinking Series There is no shortage of uncertainty and risk facing today s investor. From high unemployment and depressed

More information

OFFICIAL INFORMATION OF THE CZECH NATIONAL BANK of 16 June 2015

OFFICIAL INFORMATION OF THE CZECH NATIONAL BANK of 16 June 2015 OFFICIAL INFORMATION OF THE CZECH NATIONAL BANK of 16 June 2015 Recommendation on the management of risks associated with the provision of retail loans secured by residential property I. Purpose of the

More information

GLOSSARY COMMONLY USED REAL ESTATE TERMS

GLOSSARY COMMONLY USED REAL ESTATE TERMS GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These

More information

Housing Finance beyond Subprime

Housing Finance beyond Subprime Housing Finance beyond Subprime First Session: Guarantors of stability in times of crises / FXdenominated mortgage loans in Hungary 17 May, 21 András Gábor BOTOS, Secretary General, Association of Hungarian

More information

The International Certificate in Banking Risk and Regulation (ICBRR)

The International Certificate in Banking Risk and Regulation (ICBRR) The International Certificate in Banking Risk and Regulation (ICBRR) The ICBRR fosters financial risk awareness through thought leadership. To develop best practices in financial Risk Management, the authors

More information

CEE HOUSEHOLDS - NAVIGATING TROUBLED WATERS

CEE HOUSEHOLDS - NAVIGATING TROUBLED WATERS CEE HOUSEHOLDS - NAVIGATING TROUBLED WATERS Federico Ghizzoni Head of CEE Banking Division and Poland s Markets Division Deputy CEO and Management Board Member for CEE-Bank Austria Debora Revoltella Head

More information

Importance of Credit Rating

Importance of Credit Rating Importance of Credit Rating A credit rating estimates ability to repay debt. A credit rating is a formal assessment of a corporation, autonomous governments, individuals, conglomerates or even a country.

More information

AHML s role in housing market development and providing housing to low-income families in Russia. N.Yu. Koltsova, AHML Deputy CEO

AHML s role in housing market development and providing housing to low-income families in Russia. N.Yu. Koltsova, AHML Deputy CEO AHML s role in housing market development and providing housing to low-income families in Russia N.Yu. Koltsova, AHML Deputy CEO 1 2013 Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul

More information

BS2551 Money Banking and Finance. Institutional Investors

BS2551 Money Banking and Finance. Institutional Investors BS2551 Money Banking and Finance Institutional Investors Institutional investors pension funds, mutual funds and life insurance companies are the main players in securities markets in both the USA and

More information

Introduction to Investments FINAN 3050

Introduction to Investments FINAN 3050 Introduction to Investments FINAN 3050 : Introduction (Syllabus) Investments Background and Issues (Chapter 1) Financial Securities (Chapter 2) Syllabus General Information The course is going to be organized

More information

Subnational Borrowing Framework Lili Liu Lead Economist Economic Policy and Debt Department

Subnational Borrowing Framework Lili Liu Lead Economist Economic Policy and Debt Department International Seminar on Building New Countryside and Promoting Balanced Regional Development for a Harmonious Society Haikou, China 2006 年 8 月 21-26 日 Subnational Borrowing Framework Lili Liu Lead Economist

More information

SC Appleseed Legal Justice Center P.O. Box 7187 Columbia, South Carolina 29202 www.scjustice.org

SC Appleseed Legal Justice Center P.O. Box 7187 Columbia, South Carolina 29202 www.scjustice.org South Carolina High Cost Mortgage and Consumer Home Act: Act 42 of 2003 SC Appleseed Legal Justice Center P.O. Box 7187 Columbia, South Carolina 29202 www.scjustice.org Landmark piece of Legislation that

More information

Loan Capital Formation Strategy of Companies I.D. Anikina*

Loan Capital Formation Strategy of Companies I.D. Anikina* Abstract Loan Capital Formation Strategy of Companies I.D. Anikina* Defines of principles, goals, objectives, stages and factors of loan capital companies. Analyzed the main methods of forming loan capital

More information

Czech National Bank Information regarding changes in recommended LTV limits 15 June 2016

Czech National Bank Information regarding changes in recommended LTV limits 15 June 2016 Czech National Bank Information regarding changes in recommended LTV limits 15 June 2016 The Czech National Bank published on 14 June 2016 the amendment of its Recommendation on the management of risks

More information

TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus

TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP Supplement to the Currently Effective Prospectus and Summary Prospectus * * * The following replaces in their entirety the

More information

Chapter 13: Residential and Commercial Property Financing

Chapter 13: Residential and Commercial Property Financing Chapter 13 Outline / Page 1 Chapter 13: Residential and Commercial Property Financing Understanding the Mortgage Concept - secured vs. unsecured debt - mortgage pledge of property to secure a debt (See

More information

IFC & World Bank Experience in Establishing Mortgage Refinance/Liquidity Companies. Workshop on Housing Finance in South Asia

IFC & World Bank Experience in Establishing Mortgage Refinance/Liquidity Companies. Workshop on Housing Finance in South Asia IFC & World Bank Experience in Establishing Mortgage Refinance/Liquidity Companies Workshop on Housing Finance in South Asia Jakarta, Indonesia May 27-29, 2009 Content What is a Mortgage Refinance/Liquidity

More information