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Post by Sapphire Capital on Aug 14, 2008 20:53:42 GMT 4
Mortgage Insurance and Housing Finance in Emerging Economies Adeboye Akanni Akinwunmi University of Wolverhampton July 16, 2008 Abstract: Lending is considered to be the utilisation of resources mobilized and management of associated risk. Existing literature on housing finance in the developed world identifies the high Loan-To-Value (LTV) approach for funding housing purchase as posing a significant risk to mortgage lenders. In response, developed countries have adopted mortgage insurance as the key vehicle for credit risk mitigation. In the emerging economies however, the often adopted formal housing finance mechanism is depository-based, which lacks the mortgage insurance option. This paper provides a comprehensive review of the literature on formal mortgage tools in both developed and emerging economies and concludes that it would appear to be more beneficial for emerging economies to reform their mortgage institutions and incorporate mortgage insurance as a measure to effectively manage housing credit risk.The result of this investigation will form part of an ongoing study on housing finance in emerging economies. papers.ssrn.com/sol3/papers.cfm?abstract_id=1161172
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Post by reknab on Aug 15, 2008 18:46:41 GMT 4
If any of you wish to learn more about "Mortgage Insurance" and how it affects the bottom line for institutions venturing onto this field, google "MGIC" insurance and you will learn how much they are currently suffering..................
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