Mortgage Markets Worldwide

Mortgage markets are more than simply the means by which real estate transactions are financed; they are a key indicator of the level of development of a country's entire economy, in which banks are able to manage the associated risk, and where governments use them to promote their social and economic policies. China, India, Singapore, Hong Kong, Japan, Ghana, South Africa, Israel, and Poland are all covered in this book, as well as comparative studies of the Czech Republic, Hungary, Slovakia, Slovenia, Russia, and a long list of emerging economies. These represent both different regions of the world and markets at varying stages of economic and financial development. The editors present an institutional, empirical and theoretical evaluation of different housing finance systems, presenting a collection of studies that describe various aspects of selected mortgage markets around the world. Questions relating to housing finance efficiency and contract heterogeneity are examined and the securitization experiences in these countries are analysed, offering valuable lessons on how mortgage markets are integrated with capital markets and how particular institutional frameworks interact with mortgage markets. Short reviews on each mortgage market are given covering institutional aspects of the markets, such as the size and structure of the market (including flows and accumulation of funds); a description of the competition and a presentation of the major competitors (including market share and major financial measures); profitability in the market, with trends and structural changes; the major mortgage instruments and their market share; special tax issues; the role of the government in the market; defaults, prepayments and mortgage insurance; and major regulatory issues. Through this thorough analysis, the major existing problems in the mortgage market of each country are explored, highlighting the current steps adopted to solve these problems, propositions for dealing with the major issues in the future and the implied developments in the market. Researchers in real estate and housing economics throughout the world – as well as city analysts – will gain through Mortgage Markets Worldwide a better understanding of this rich and complex market.