Buckley, Karaguishiyeva,Van Order, and
Vecvagare analyze the structure of approaches to mortgage
credit risk that are now being used in a number of OECD and
transition economies. The authors' basic approach is to
show how option pricing models can help measure and evaluate
the risks of various schemes. They find that mortgage
default insurance can be a cost-effective tool for both
improving housing affordability and efficiently addressing
some of the rationing that characterizes this market. When
correctly structured, as it is in a number of transition and
market countries, this kind of program can be expected to
reduce nonprice rationing at an actuarially fair price. At
the same time, considerable care must be exercised in the
development of such instruments. Geographical risk
diversification, particularly across borders, can play a
major role in the success of these programs. Such
diversification could be important not only in smaller
transition economies but in EU countries as well.
Bibliographic Details
| Main Authors: |
Buckley, Robert,
Karaguishiyeva, Gulmira,
Van Order, Robert,
Vecvagare, Laura |
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| Format: | Policy Research Working Paper
biblioteca
|
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2003-05
|
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| Subjects: | ASSET PRICES,
ASYMMETRIC INFORMATION,
BANKRUPTCY,
BAUSPARKASSEN,
BONDS,
CAPITAL REQUIREMENTS,
COMPARATIVE ADVANTAGE,
CONTINGENT LIABILITIES,
CONTINGENT LIABILITY,
COVERAGE,
CREDIT INSURANCE,
CREDIT POLICIES,
CREDIT RATING,
CREDIT RATIONING,
CREDIT RISK,
CREDIT RISKS,
DEBT,
DEBT FINANCING,
DEFAULT RISK,
DEPOSIT INSURANCE,
DIVIDENDS,
DOWN PAYMENTS,
EMPIRICAL EVIDENCE,
FACE VALUE,
FINANCIAL INSTITUTIONS,
FINANCIAL SECTOR,
FINANCIAL SYSTEMS,
GOVERNMENT EXPENDITURES,
HOMEOWNERSHIP,
HOUSEHOLD INCOME,
HOUSING,
HOUSING AFFORDABILITY,
HOUSING MARKETS,
INFORMATION PROBLEMS,
INSURANCE,
INSURANCE COMPANIES,
INSURERS,
LAWS,
LEVEL PLAYING FIELD,
MARKET ECONOMIES,
MARKET INSTITUTIONS,
MATURITIES,
MORTGAGE,
MORTGAGE CREDIT,
MORTGAGE CREDIT INSURANCE,
MORTGAGE DEFAULT,
MORTGAGE DEFAULT INSURANCE,
MORTGAGE INSURANCE,
MORTGAGE INSURERS,
MORTGAGE LENDING,
MORTGAGE LOAN,
MORTGAGE LOANS,
MORTGAGE MARKET,
MORTGAGE MARKETS,
MORTGAGES,
NEGATIVE EQUITY,
POLICY RESEARCH,
PREMIUMS,
PRESENT VALUE,
PRICE RATIONING,
PRICING MODELS,
PRIVATE INSURANCE,
PROGRAMS,
PUBLIC INSURANCE,
PUBLIC POLICY,
RATES,
RESERVES,
RISK ALLOCATION,
RISK DIVERSIFICATION,
SAVINGS,
SAVINGS BANKS,
TRANSITION ECONOMIES,
TRANSPORT,
URBAN DEVELOPMENT MORTGAGES,
CREDIT TRANSACTIONS,
LOANS,
LENDING,
GUARANTEES,
METHODOLOGY,
HOUSEHOLDS,
TRANSACTION COSTS,
SUBSIDIES,
URBAN DEVELOPMENT, |
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| Online Access: | http://documents.worldbank.org/curated/en/2003/05/2360828/comparing-mortgage-credit-risk-policies-options-based-approach
http://hdl.handle.net/10986/18180
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