Real estate bubbles in a bank-real estate loan network model integrating economic cycle and macro-prudential stress testing

2020 ◽  
Vol 542 ◽  
pp. 122576
Author(s):  
Lei Wang ◽  
Shouwei Li ◽  
Jining Wang ◽  
Yi Meng
Keyword(s):  
Real Estate ◽  
Network Model ◽  
Stress Testing ◽  
Economic Cycle ◽  
Real Estate Loan

scholarly journals Debtholder Monitoring Incentives and Bank Earnings Opacity

2020 ◽  
pp. 1-38
Author(s):  
Piotr Danisewicz ◽  
Danny McGowan ◽  
Enrico Onali ◽  
Klaus Schaeck
Keyword(s):  
Real Estate ◽  
Information Disclosure ◽  
Quality Of Information ◽  
Legislative Changes ◽  
Priority Structure ◽  
Real Estate Loan

Abstract We exploit exogenous legislative changes that alter the priority structure of different classes of debt to study how debtholder monitoring incentives affect bank earnings opacity. We present novel evidence that exposing nondepositors to greater losses in bankruptcy reduces earnings opacity, especially for banks with larger shares of nondeposit funding, listed banks, and independent banks. The reduction in earnings opacity is driven by a lower propensity to overstate earnings and is more pronounced among larger banks and in banks with more real estate loan exposure. Our findings highlight the importance of creditors’ monitoring incentives in improving the quality of information disclosure.

scholarly journals The Analysis of Property Loans Development in Indonesia

2021 ◽  
Vol 11 (1) ◽  
pp. 123
Author(s):  
Anisa Nurpita ◽  
Rina Oktavia
Keyword(s):  
Economic Growth ◽  
Real Estate ◽  
Essential Role ◽  
Secondary Data ◽  
Bank Lending ◽  
Growth Trend ◽  
Population Number ◽  
Loan Growth ◽  
Analytical Tools ◽  
Real Estate Loan

The property sector in Indonesia has an essential role in driving the national economy. The bank lending development to the property sector in April 2019 did not show significant growth and stagnant. This study analyzes the growth trend of property loans in Indonesia and estimates the factors that affect the number of housing loans (KPR) and apartment ownership loans (KPA) in Indonesia. The data used in this study are secondary data and time series. The analytical tools used in this research are trend and regression. The results showed that from 2020 to 2025, the property loan growth in Indonesia will still be sluggish. The condition is identified by construction loan which is expected to grow even though the increase is not too significant, real estate loan is still fluctuating, this is because in 2019 there was a decline in real estate loan growth of almost 50 percent from the previous year, and KPA and KPR are estimated to decline even though in nominal terms the number of KPR and KPA increases. The population number variable has a positive and significant effect on the number of KPR and KPA in Indonesia. The more the population, the more the number of KPR and KPA will increase. Meanwhile, the variables of economic growth and inflation in this study did not significantly affect the number of KPR and KPA.

scholarly journals Recourse as Shadow Equity: Evidence from Commercial Real Estate Loans

2021 ◽  
Vol 2021 (077) ◽  
pp. 1-32
Author(s):  
David Glancy ◽  
◽  
Robert Kurtzman ◽  
Lara Loewenstein ◽  
Joseph Nichols ◽  
...  
Keyword(s):  
Real Estate ◽  
Bargaining Power ◽  
Commercial Real Estate ◽  
Loan Contracts ◽  
Percentage Points ◽  
To Receive ◽  
Real Estate Loan

We study the role that recourse plays in the commercial real estate loan contracts of the largest U.S. banks. We find that recourse is valued by lenders and is treated as a substitute for conventional equity. At origination, recourse loans have rate spreads that are at least 20 basis points lower and loan-to-value ratios that are around 3 percentage points higher than non-recourse loans. Dynamically, recourse affects loan modification negotiations by providing additional bargaining power to the lender. Recourse loans were half as likely to receive accommodation during the COVID-19 pandemic, and the modifications that did occur entailed a relatively smaller reduction in payments.

Introduction

Dead Pledges ◽  
2016 ◽  
Author(s):  
Dead Pledges
Keyword(s):  
Real Estate ◽  
Real Estate Loan ◽  
Mortgage Contract ◽  
Credit Contract

What is a “dead pledge”? Despite its gothic connotations, it actually names something that is probably quite familiar to many readers: a mortgage contract. The name for a contract on a real estate loan comes from the French mort gage. From this surprising etymology, we might exhume any number of meaningful lessons: about the terrifying nature of debt; the strange ontology of property; the uncanniness of ownership; the implicit threat at the heart of the credit contract. ...

Collapse: the decline and fall of master planned golf course communities

2017 ◽  
Vol 35 (6) ◽  
pp. 638-651 ◽  
Author(s):  
Chris Mothorpe ◽  
David Wyman
Keyword(s):  
South Carolina ◽  
Real Estate ◽  
Financial Economic ◽  
Golf Course ◽  
Vacant Lots ◽  
Economic Cycle ◽  
Content Type ◽  
Pricing Behavior ◽  
Before And After ◽  
Practical Implications

Purpose The purpose of this paper is to examine the pricing of vacant lots in master planned golf course communities (GCCs) over the period of 2000-2016. The authors compare the longitudinal pricing behavior of different lot types during this economic cycle and examine the causes of the property bubble and subsequent deterioration of the business model with the arrival of the Financial Economic Crisis (FEC). Design/methodology/approach The authors construct spatial hedonic models for three master planned GCCs in Pickens County, South Carolina and use interaction dummies to examine the pricing of different types of vacant lots before and after the FEC. Findings The authors find that there is a collapse in value for interior lots in the GCCs compared to interior lots in the county. As interior lots comprise over 50 percent of inventory in a typical master planned GCC, this loss of real estate value threatens the viability of such communities in the aftermath of the FEC. Practical implications The research results inform real estate investors, real estate developers, current homebuyers and potential homebuyers of the impacts of the FEC on master planned GCCs and some of the risks associated with such developments. Originality/value This is the first paper the authors are aware of that indicates the financial viability of master planned GCCs is associated with the pricing fragility of interior lots during cyclical markets. While demand for premium quality lots suffers, there is a collapse in demand for interior lots during the crisis.

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