This study on mortgage financing of housing focuses on four points. Firstly, the affordability of housing cost is mentioned. There are several ratios and indexes of affordability of housing. The indexes and ratios have been improved since 1990 and the...
This study on mortgage financing of housing focuses on four points. Firstly, the affordability of housing cost is mentioned. There are several ratios and indexes of affordability of housing. The indexes and ratios have been improved since 1990 and the importance of housing lending has been increased. Secondly, the motragage financing and its pricing mechanism is surveyed. This survey reveals that the underwriting guideline is very important and the evaluaing mortgage model has two aspects - interest risk and credit risk. Thirdly, risk evaluating model is studied. Banking risks are two aspects- quantatative and qualitative. Quantative risks are credit risk, market risk, liquidity risk and settlement risk. Qualitative risks are office risk, system risk and law risk. Especailly the management of credit risk is important. Lastly, privatization of housing banking sector is surveyed. To enhance the efficiency of housing financing is main aspect of this process of privatization.