Mortgage Bonds Research Articles

South Africa’s Housing Financialisation Crises and Social Resistance

The world’s most unequal country suffers from various housing crises, especially when it comes to excessive reliance upon a private sector prone to market failures, especially affordability. State housing finance strategy during the transition from apartheid to democracy relied upon augmentation of formal banking finance so as to promote home ownership. But as macro-economic conditions changed in the late 1980s, the resulting mass defaults on individual families’ home mortgage bonds led not only to foreclosures by a (white) state, but (black) working-class resistance organised by the country’s leading urban social movement, known as the ‘bond boycott.’ Even after democracy, a worsening housing backlog coincided with resurgence of household debt crises in the wake of the 2008 global financial meltdown. That generated a new housing finance strategy led by Mastercard and a local fintech firm (supported by the World Bank): collateralisation of welfare grants which in turn allowed debit orders for repayment of microfinance (typically used for minor home improvements). Again, social resistance played an important role, as the strategy caused even worse personal debt crises, and a welfare NGO’s successful fight to close Mastercard’s partner. But beyond periodic revolts of these sorts, a durable housing finance policy has remained elusive.

The Hustler and the Mooch: Slavery in Late Eighteenth-Century Bombay

ABSTRACT How did property in persons manifest itself in late eighteenth-century Bombay? This article uses judicial records to explore how the master-slave relationship could be inverted: a woman sued a man who claimed to ‘own’ her for the money she spent on maintaining him. These records provide a unique insight into the biography and everyday life of an urban slave in this period and the intertwining of domesticity, caste, religion and kin-building. Jaffer Mahomed claimed that Assa was a slave and collateral on a debt and produced a deed of sale and a mortgage bond. Assa claimed she had maintained him and produced an itemized account of everyday expenditure and a manumission document. Through an analysis of the documents produced in court, interrogations, complaints and rejoinders, this article demonstrates how judicial sources can help understand the strategic choices and horizon of possibilities available to urban slaves in this period.

Aantekeninge: Afgeleide wyse van eiendomsverkryging op ’n onroerende saak gehou in mede-eiendom vereis steeds ’n saaklike ooreenkoms met álle mede-eienaars

Aantekeninge: Afgeleide wyse van eiendomsverkryging op ’n onroerende saak gehou in mede-eiendom vereis steeds ’n saaklike ooreenkoms met álle mede-eienaars

From Charity to Commerce: Bondholders, Women's Auxiliaries, and Community Health Care in Arizona.

This article contrasts women's auxiliaries as volunteers and fundraisers at a voluntary sanatorium and a community hospital in metropolitan Phoenix. Their experience highlights the rising importance of private investors in nonprofit health care. Nonprofit community hospitals depended on volunteer labor from women's auxiliaries to keep their doors open in the mid-twentieth-century United States. However, their position became subordinate to financial demands from bondholders-these (and other) financial influences eroded the social capital created by charitable labor. At Maryvale Hospital, one of the "eight-percenter" mortgage bond hospitals built across the Sun Belt during the early sixties, bondholders assumed much of the fundraising and advocacy activities reserved for women's auxiliaries. Once bondholders assumed the duties of women's auxiliaries, their profitability became the determinant for success in nonprofit health care. Their rise reflects a shift from the social capital associated with charitable volunteers to the bond markets necessary for modern metropolitan development.

Theory and practice of overcoming an economic crisis (on the Nobel Prize in economics in 2022)

The article analyzes the Nobel Prize winners in economics of the 2022’s research results. The author explains the meaning of the terms which are necessary for the analysis: money multiplier, liquidity, mortgage, mortgage bonds. In addition, the psychological factor in the formation of critical situations in the banking sector is considered the way it was interpreted by the winners. The article analyzes the reasons which led to the lower position of the USSR’s and modern Russia’s money multiplier compared to the position of the multiplier of the countries with developed market economies including, first of all, the USA. The paper also discusses the role which the “real bills doctrine” played in the activity of the US Federal Reserve System and Ben Bernank personally. Ben Bernank’s cautious line of behavior during the overcoming the 2008 crisis is described. The model of liquidity dynamics which belongs to the laureates and that is vividly discussed in the scientific community is considered in detail.

Environmental impact of mortgage bond purchases: presentation of a possible estimation methodology

This article presents a methodological framework for estimating the environmental impact of mortgage bond purchases. The model presented through the Mortgage bond purchase programme of the Magyar Nemzeti Bank (MNB), the Central Bank of Hungary builds on the changing composition of the Hungarian housing stock, and its main assumption is that, while maintaining the total floor area of the housing stock unchanged, financing residential property modernises the housing stock as a result of tightening building energy requirements, which reduces emissions. In our estimate, thanks to the MNB’s Mortgage bond purchase programme, the Hungarian building stock could reduce its CO2 emissions by 13-41 thousand tonnes per year. We have made several assumptions and simplifications in our calculations, and the results can only be evaluated in this context.

Crown for sale? : reflections on the political function of documents of accounting and debt at the royal court in the Holy Roman Empire

The written record of the late Middle Ages is characterized by an increasing number of royal debt and mortgage bonds of the Holy Roman Empire. This stands in contrast to the fragmentary written record of royal accounting documents. For a long time, this was considered to be a manifestation of poor financial administration, which was held to have led to a continuous state of imperial insolvency. In this paper, I present a brief English summary of key results of my habilitation thesis. From a cultural-historical perspective, they show that for a successful ruler documents of debt and accounting contributed to both the maintenance of creditworthiness and to binding and controlling his subjects, which were the principal pre-conditions of political power in the pre-modern age.

PARATE EXECUTIE AND PUBLIC POLICY. THE SUPREME COURT OF APPEAL PROVIDES FURTHER GUIDELINES

The right of a creditor to realise the property of its debtor without first obtaining the permission of the court is clouded in controversy. This type of extra-judicial execution is known in Roman-Dutch law as parate executie (literally: “immediate execution”). The essence of parate executie is that it allows the creditor to self-help in the event of default by the debtor. The tenability of parate executie has come under judicial scrutiny in the recent past, not least because of its potential infringement of the provisions contained in section 34 of the Constitution of the Republic of South Africa, 1996. Section 34 provides that “[e]veryone has the right to have any dispute that can be resolved by the application of law decided in a fair public hearing before a court or, where appropriate, another independent and impartial tribunal or forum” (see in this regard, First National Bank of South Africa Ltd v Land and Agricultural Bank of South Africa; Sheard v Land and Agricultural Bank of South Africa 2000 3 SA 626 (CC); (2000 8 BCLR 876); Chief Lesapo v North West Agricultural Bank 2001 1 SA 409 (CC); Findevco (Pty) Ltd v Faceformat SA (Pty) Ltd 2001 1 SA 251 (E); De Beer v Keyser 2002 1 SA 827 (SCA); Senwes Ltd v Muller 2002 4 SA 134 (T); Shoprite Checkers (Pty) Ltd t/a OK Franchise Division v Juglal NO (unreported case no 6049/01, 13 Sep 2002 (D)) (which was endorsed on appeal in Juglal NO and another v Shoprite Checkers (Pty) Ltd t/a OK Franchise Division 2004 5 SA 248 (SCA)); Graf v Buechel 2003 4 SA 378 (SCA) (which dealt with a forfeiture clause (ie, pactum commissorium) and therefore falls outside the direct scope of the present note); and Bock v Dubororo Investments (Pty) Ltd 2004 2 SA 242 (SCA)).These cases have further been discussed in a number of case notes (see Scott “Summary Execution Clauses in Pledge and Perfecting Clauses in Notarial Bonds” 2002 65 THRHR 656 et seq; Steyn “Perfection Clauses, Summary Execution (Parate Executie) Clauses, Forfeiture Clauses (Pacta Commissoria) and Conditional Sales in Pledge Agreements and Notarial Bonds – The Position Clarified” 2004 Obiter 443 et seq; and Schulze “Parate Executie, Pacta Commissoria, Banks and Mortgage Bonds” 2004 37 De Jure 256 et seq).Although parate executie is employed by many creditors to realise the security that they hold, commercial banks, being the prime example of money lenders in modern times, have a particular vested interest in retaining parate executie as a valid instrument to realise movables that were given to the bank as security.In the recently reported decision in SA Bank of Athens Ltd v Van Zyl (2005 5 SA 93 (SCA)) the court was asked to pronounce on the validity of a clause that provides for parate executie on the movable property (in the present case: four investment policies) of a defaulting debtor which were held by a bank. The court was further asked to determine whether a parate executie clause is in conflict with public policy.

Trends in the development of mortgage–backed securities in modern condition

Purpose: to identify objective patterns of development of mortgage–backed securities that determine the prospects of this direction to increase its role in the Russian economy.Methods: the study used general scientific methods of cognition, including comparative analysis, economic–statistical and abstract– logical methods, generalization and complex analysis. The methodological basis is the fundamental provisions of the theory of mortgages, the general theory of mortgage lending, thematic works of domestic and foreign scientists, as well as data from the Analytical Center DOM.RF.Results: the concept and classification of mortgage–backed securities are considered, the features of securitization are presented. The analysis of factors affecting the price level and profitability of mortgage–backed securities is carried out. The analysis of the state of the mortgage securities market in Russia has been carried out. The analysis of factors that have a significant impact on the current level of prices and yields of Russian mortgage bonds has been carried out. Development problems have been identified.Conclusions and Relevance: in the conditions of uncertainty in the Russian economy caused by the pandemic, sanctions, geopolitical tensions and inflation, retail investors are seek to secure their savings by investing them in bonds with yields higher than deposit rates. Bank deposits will remain the main way of saving money for the population. The popularity of bond investments will gradually grow, especially among the younger generation. The state has taken the right step towards improving the financial literacy of the Russian population and instilling a culture of investing in various instruments, especially securities. A similar practice should be applied to mortgage–backed securities. It is recommended to use positive experience in attracting individuals to certain segments of the stock market: simplification of access and purchase of mortgage bonds for the ordinary population; information campaign to popularize mortgage bonds as a simple investment tool with optimal compliance with the «risk–return» parameters; provision of state or institutional support measures in the form of tax benefits for investors, or reduced size agency commissions.

The Great De-Mortgaging: the Retreat of Life Insurances From Housing Finance in US-German Historical Perspective

Abstract Recent research in economic history has found that mortgage debt in relation to GDP has taken off in the historical long run (“great mortgaging”), as growing banking assets have been redirected into mortgage credit. This paper maps the parallel long-run investment history of private (life) insurance as the much overlooked second pillar of the financial system. Drawing on in-depth studies of the US and Germany, it finds that a “great de-mortgaging” took place in insurers’ portfolios, with mortgages falling from up to 90 percent in the 19th century to below 5 percent today in favor of fixed-income securities. A parallel shift to secondary mortgage bonds has hardly offset this decline, while direct real estate remained largely a residual investment class. Banks’ great mortgaging is thus partly an institutional substitution effect. The paper sees insurers’ asset shift itself as mainly driven by long-run changes in capital demand and competition with banks and pension funds. It extends these findings to other long-term institutional investors and other OECD countries in the historical long run.

Regspraak: Oordrag van onroerende eiendom kragtens ’n egskeidingsbevel tóg ’n besmette vervreemding volgens die Insolvensiewet?

The Insolvency Act defines a disposition for purposes of the act and states that a voidable disposition does not include a disposition in compliance with an order of court. Section 29 of the act defines a voidable preference for this section as a debtor’s disposition of his property made not more than six months before the sequestration of his estate. A sequestration is defined with reference to a sequestration order, which means any order of court whereby an estate is sequestrated and includes a provisional order. In the Mercantile case the marriage of the respondent and his erstwhile wife was dissolved by a divorce order of the divorce court in January 2020. Incorporated into the court order is the settlement of the parties’ respective claims regarding their matrimonial property regime. The parties had been married with a classic antenuptial contract that excluded any community of property, community of profit and loss or any accrual sharing. Notwithstanding the fact that the judgment indicates otherwise, section 7(3) of the Divorce Act could not have applied in the light of the settlement agreement. This section is applicable only in the absence of any agreement between the parties regarding the division of their assets. Only where section 7(3) applies is the court granted a wide discretion to order that such assets, or such part of the assets, of the other party as the court may deem just, must be transferred to the first-mentioned party. The final settlement of the erstwhile couple’s property regime was consequently not as a result of the court’s exercising its statutory discretion but the result of the agreement sanctioned by the court’s order. In accordance with the agreed settlement, the husband was compelled by the court order to transfer a house in Gallo Manor registered in his name as immovable property to the erstwhile wife. This property was unburdened by any registered limited real security right such as a mortgage bond. The transfer was completed in March 2020 when the property was transferred into the woman’s name in accordance with the requirements of the Deeds Registries Act 47 of 1937. Mercantile Bank attained a provisional sequestration order against the respondent in October 2021 and apparently, according to Maier-Frawley J’s judgment, indicated its intention to rely on section 29 of the Insolvency Act to claim the reversal of the transfer of the immovable property as an alleged voidable disposition of a valuable asset from the estate of the respondent as debtor to the detriment of the claimant and other creditors. It is submitted that the six-month limit forms an unsurpassable hurdle and bars the application of section 29 in this matter. In addition, any reliance on eg section 31 of the Insolvency Act that refers to collusive dealings before sequestration without an equivalent six-month time bar will be barred by the explicit definition of a disposition in the act that excludes a disposition in compliance with an order of court. It may be doubted whether it is justified to waste additional costs and the time of the high court in light of the foregoing in this matter. Where the legal position is crystalized the court is left without a contrary discretion.

Основні проблеми іпотечного кредитування та напрями його активізації в Україні

Stagnation of the loan market of Ukraine actualizes issues related to the need to intensify mortgage lending. The key problems that stand in the way of actualization of mortgage lending in Ukraine are identified as follows: preservation of low level of welfare of the population; numerous and high-profile bankruptcies of participants in the primary housing market; poor quality of the previously formed loan portfolio of individuals; actual prohibition for banks to provide loans to individuals in foreign currency; formation in Ukraine of a kind of «resistance movement» against the return of mortgage loans; presence of a moratorium on the recovery of property on foreign currency loans; a complex of problems related to the legal aspects of the provision and repayment of mortgage loans; low level of institutional development of the mortgage market; presence of a number of objective difficulties and subjective factors in the implementation of the government program «Affordable Mortgage 7%». An analysis of the results of the government program «Affordable Mortgage 7%» for 2021 suggests that its key task is fulfilled only by 23%. To intensify mortgage lending in Ukraine, it is necessary: an increase in the availability of lending to individuals for the purchase of housing within the framework of the government program «Affordable Mortgage 7%»; development of additional government mortgage lending programs focused on the purchase of housing in the primary market; ensuring legislative support for judicial reform; further reduction of the share of problem loans in the loan portfolio; providing legislative support for the creation of a second level of the mortgage market, which should include the issuance and circulation of mortgage bonds, which can also be used as a tool for investing pension savings

Investment mortgage as an innovative banking product in the real estate financing market

Subject. This article discusses the role of investment mortgage in overcoming the crisis of attracting deposits by credit institutions and stimulating the investment activity of households in the real estate financing market. Objectives. The article aims to define particularities of investment mortgage and prospects for its development in the real estate funding market, and ways to improve the quality of mortgage bonds in the investment mortgage segment using artificial intelligence technologies in underwriting. Methods. For the study, I used the systems approach, comparative and logical analyses. Results. The article presents an author-developed definition of the Investment Mortgage category, its basic elements, and it describes the investment mortgage life cycle and risks. It also proposes to supplement the scoring through using the gradient boosting technique when underwriting a credit application for investment mortgage. Conclusions and Relevance. The investment mortgage segment, including mortgage deposit and mortgage loan, has a life cycle and risks that differ from the ones of the mortgage programs implemented in the banking services market. Using the gradient boosting technique can help improve the efficiency of underwriting applications for mortgage lending and investment mortgage. The results of the study can be used by credit organizations when developing a product line of mortgage lending programs in the investment mortgage segment, and digitizing credit underwriting of mortgage borrowers.

Methodology of determination of coupon rate parameters for the Russian mortgage backed securities

The MBS market plays a big role in the funding of mortgages in the Russian Federation. The Russian mortgage bonds are planned to have attractive features for investors. However, some mortgage bond issues do not have fixed coupon rates. The article proposes an approach to the determination of interest rates for the Russian mortgage-backed securities. The algorithm is based on a calculation of the required rate of return on the MBS and a calculation of the MBS cash flows from a cover pool of mortgages to determine the annual MBS coupon rate.

ИНВЕСТИЦИОННО-КРЕДИТНЫЙ МЕХАНИЗМ ИПОТЕЧНОГО КРЕДИТОВАНИЯ КОММЕРЧЕСКОЙ НЕДВИЖИМОСТИ

Consumer demand for commercial real estate currently remains low due to both low incomes of the population and the lack of investment attractiveness of commercial real estate. These factors have a negative impact on the commercial real estate market in general and cause an overstocking of the sales market in particular. The article gives a recommendation to improve the conditions for mortgage lending in Russia, which consist in carrying out the following measures: expanding the composition of banking assets, the main factor for the implementation of which is the standardization of banking products for the purpose of free sale on the market or pledging for attracted loans in a situation of liquidity shortage; introduction of a long-term bank deposit; introduction of the scheme "long assets - long liabilities", which consists in issuing mortgage loans at the expense of loans in the secondary market by issuing their own mortgage bonds; introduction of securitization; creation of an information base of market parameters for real estate transactions. Also, an investment and credit mechanism has been formed, aimed at expanding opportunities for investing in commercial real estate, developing the commercial real estate market and attracting small and medium-sized businesses. The developed mechanism included three stages: conclusion of a preliminary loan agreement; conclusion of a mortgage lending agreement; attracting investors. As a result of the introduction of the investment and credit mechanism, the following results were obtained: the possibility of reducing the amount of the mortgage loan, reducing the monthly payment, reducing the final cost of the loan, reducing the risk of insolvency of the client, ensuring the investment attractiveness of commercial properties.

Regspraak: Einde van gemeenskaplike boedel van ’n egpaar getroud in gemeenskap van goed en aanvang van uitwissende verjaring van tersake vorderinge val saam

But for an extraordinary order for a division of the joint estate stante matrimonio under section 20 or 21 of the Matrimonial Property Act 88 of 1984, the default joint estate of spouses married in community of property will come to an end with the demise of the marriage. This is either with the death of the firstdying spouse or by an order of the divorce court. It is impossible to extend the joint estate beyond these moments. With the end of the joint estate, the erstwhile spouses (or the estate of the demised spouse) are entitled to claim half of the value of the erstwhile joint estate. If the parties are unable to reach an amicable agreement to this end, a liquidator will be appointed to finalise the division of the assets. As from the end of the marriage, the former spouses have separate estates. Any new acquisition, gift, inheritance or income acquired after that date falls into the newly founded separate estate of the holder, and the other party has no claim to share in these assets. In Koko v Koko the respondent was married in community of property to Mr Koko in 1979 but that marriage ended in divorce by court order in 2001. The respondent left the previous marital home that was registered as joint property in the names of both spouses and retained inter alia some movable property from the erstwhile joint estate. Mr Koko remained in the house and continued to pay all rates and taxes, and the outstanding debt secured by a mortgage bond was amortised by the time of his demise. He later married the applicant and the couple lived in the house until his demise in 2013. Only years later did the respondent claim half of the current value of the immovable property as the still-registered co-owner. In this contribution, attention is devoted to the justifiability of the premise of the court that the claim should succeed notwithstanding the fact that more than nineteen years had lapsed since the applicable joint estate ended with the divorce order and the claimant did not contribute to the current unencumbered value of the property. If the claim to half of the value of the former joint estate is categorised as a personal right of the claimant, it is submitted that the effect of extinctive prescription should have been considered. By default, a debt is extinguished after three years and just the listed categories of debts mentioned in section 11(a) of the Prescription Act, including a judgment debt, will prescribe only after 30 years. It is submitted that the division of the joint estate is a natural consequence of the end of the marriage in community of property, and in KwaZulu-Natal orders for a division of the joint estate of parties married in community of property are consistently refused when divorce orders are granted for the very reason that they are unnecessary. In the absence of an applicable court order, the relevant debt cannot be defined as a “judgment debt” and the default prescription period governed by section 11(d) of Act 68 of 1969 should apply. It is inequitable that a previous spouse may, more than nineteen years after the divorce, benefit from the subsequent enhanced value of an asset that formed part of the erstwhile joint estate at the cost of another, who had contributed to that currently enhanced value of the asset since the joint estate came to an end. It boils down to unjustified enrichment if this is accomplished under the guise of her joint ownership of the immovable property still registered in the names of the former spouses as original co-owners because the real right of ownership is imprescriptible. A personal claim for half of the value of the assets in the estate would, however, have been prescribed after three years since the claim had vested.

Designing and Estimating a Prepayment Model for Callable Mortgage Bonds

Designing and Estimating a Prepayment Model for Callable Mortgage Bonds

Covered bonds, loan growth and bank funding: The Swiss experience since 1932

AbstractThe global financial crisis triggered discussions about what factors constitute a stable mortgage finance system. This paper contributes to these discussions by empirically analysing the Swiss mortgage finance system from a macroeconomic and banking sector balance sheet perspective. Our analysis is based on a novel and near‐comprehensive data set of mortgage bond (Swiss Pfandbrief) issuances over the sample period from 1932 to 2014. The empirical results suggest that growth in the volume of the Swiss Pfandbrief does not induce more loan growth than expected given the state of the economy and that compared with other bank refinancing activities, the Swiss Pfandbrief provides a stabilising source of funding.

Twenty Years of Mortgage Banking in Slovakia

Mortgage banking began to develop in Slovakia after 1998 as an ambitious project, the goal of which was to elevate the lagging development of the real estate market, the development of the financial market and the creation of banks’ long-term resources. Our goal is a comprehensive assessment of the development of Slovak mortgage banking for the past 20 years from the perspectives of the development of banking, the mortgage bond market, the real estate market and selected interactions between individual elements of the mortgage system. The specific aim of the study is to evaluate the substantial links between the basic economic indicators, indicators of housing finance and real estate prices in Slovakia. To evaluate these issues VAR (Vector Autoregression) models, models of panel and linear regression and DEA (Data Envelopment Analysis) models were used. Slovakia has specific indicators of the development of mortgage banking, adequate to its historical and economic development. It was confirmed that the availability of real estate loans had a significant impact on the increase in real estate prices. Real estate prices in Bratislava have different development factors than real estate prices from a nationwide perspective. Low interest rates have an important role in housing financing. The second part of the study is oriented towards an evaluation of the technical efficiency of individual banks. The results of DEA point out that the largest banks in Slovakia were the most efficient in the pre-crisis year 2007. The overall results show that policymakers should react not only to the household indebtedness rate and risks for individual clients, but should also see the risks for banks in possible changes in the real estate market, or the risks of changes in interest rates in the future.

\u2018Sub-Prime\u2019 Water, Low-Security Entitlements and Policy Challenges in Over-Allocated River Basins: the Case of the Murray\u2013Darling Basin

Environmental policy is often implemented using market instruments. In some cases, including carbon taxing, the links between financial products and the environmental objectives, are transparent. In other cases, including water markets, the links are less transparent. In Australia’s Murray–Darling Basin (MDB), financial water products are known as ‘entitlements’, and are similar to traditional financial products, such as shares. The Australian water market includes ‘Low Security’ entitlements, which are similar to ‘sub-prime’ mortgage bonds because they are unlikely to yield an amount equal to their financial worth. Nearly half the water purchased under the Murray–Darling Basin Plan for environmental purposes is ‘Low Security’. We suggest that the current portfolio of water held by the Australian Government for environmental purposes reflects the mortgage market in the lead-up to the global financial crisis. Banks assumed that the future value of the mortgage market would reflect past trends. Similarly, it is assumed that the future value of water products will reflect past trends, without considering climate change. Historic records of allocations to ‘Low Security’ entitlements in the MDB suggest that, in the context of climate change, the Basin Plan water portfolio may fall short of the target annual average yield of 2075 GL by 511 GL. We recommend adopting finance sector methods including ‘hedging’ ‘Low Security’ entitlements by purchasing an additional 322–2755 GL of ‘Low Security’, or 160–511 GL of ‘High Security’ entitlements. Securing reliable environmental water is a global problem. Finance economics present opportunities for increasing the reliability of environmental flows.