Changes in the Value of Mortgage Collateral in the Context of Mortgage Loan Securitization in Poland
AbstractPolish regulations concerning the credit risk management process in banks' portfolios require banks to update the value of real estate collateralized as collateral for mortgages. However, because the mechanism of updating property values using standard valuation methods is complicated, time consuming, expensive and requires extensive databases, banks are not interested in conducting such a process more often than once a year. Taking into account changes in real estate value over time and the changes taking place in the economy of Poland and the world, it seems reasonable to carry out such a regular update. The possibility of securitization by universal banks means that the problem of the value of mortgage collateral moving to the financial market, specifically to investors purchasing securities based on securitized credits. Polish and European regulations indicate the need to conduct an individual valuation of the mortgage collateral portfolio, for each bank.However, there is no obligation in these regulations to revalue the value of the property in the securitized portfolios.The purpose of this article is to identify and discuss the problem of updating the value of real estate for the purposes of the securitization process.
|Publication size in sheets||0.5|
|Book||Soliman Khalid S. (eds.): Innovation Management and Education Excellence through Vision 2020. Proceedings of the 31st International Business Information Management Association Conference (IBIMA) , 2018, International Business Information Management Association (IBIMA), ISBN 978-0-9998551-0-2, 6739 p.|
|Keywords in English||Securitization, mortgage credits, property valuation, comparative approach, income approach, cost approach, mixed approach.|
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