scholarly journals International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 57-79
Author(s):  
Piyush Tiwari ◽  
Keyword(s):  
Option Price ◽  
Mortgage Lending ◽  
Insurance Premium ◽  
Cost Ratio ◽  
Mortgage Insurance ◽  
Cox Proportional Hazard ◽  
Structure Framework ◽  
Income Ratio ◽  
Prepayment And Default ◽  
Mortgage Termination

Housing mortgage finance in India is constrained by the maximum loan-to-cost ratio and installment income ratio conditions imposed by housing finance companies. The typical reason for this behaviour is that the market for the sharing of risk in mortgage lending is not yet fully developed. Mortgage insurance plays an important role in developing this market. The objective of this paper is to present a case for mortgage insurance market in India. This paper develops a mortgage premium structure framework in which mortgage insurers charge an insurance premium that equates losses to revenue. This paper also models mortgage termination due to prepayment and defaults. We contend that the termination of mortgage in housing is not as 'ruthless' as OPM theory would suggest, primarily because households are not financiers in the 'stricter sense' We have used the Cox proportional hazard model to analyze prepayment and default of mortgage behaviour in India. The results indicate that financial concerns (like the option price, loan to value ratio, and monthly principal and interest to income ratio) are important determinants besides household characteristics. The cumulative prepayment or default probabilities from these models are used in the estimation of the insurance premium structure.

scholarly journals Loan to Value Caps and Government-Backed Mortgage Insurance: Loan-Level Evidence from Dutch Residential Mortgages

De Economist ◽  
2020 ◽  
Vol 168 (4) ◽  
pp. 453-473
Author(s):  
Leo de Haan ◽  
Mauro Mastrogiacomo
Keyword(s):  
Credit Risk ◽  
Policy Implication ◽  
Debt Service ◽  
Mortgage Loan ◽  
Mortgage Loans ◽  
Mortgage Insurance ◽  
Level Data ◽  
Model Predictions ◽  
Income Ratio ◽  
Loan Guarantees

Abstract Using loan level data on mortgage loans originated by Dutch banks during 1996 to 2015, we analyse the determinants of the incidence of non-performance. We find that both the originating loan-to-value ratio (OLTV) and the debt-service-to-income ratio are significantly positively associated with the probability of non-performance. The results suggest that mortgages with government-loan-guarantees perform better. Moreover, several mortgage loan and borrower characteristics, such as the (interest-only) loan type and the underwater status of the borrower, increase credit risk. Our model predictions suggest a novel policy implication: in order to avoid acceleration of non-performance probabilities, the OLTV-limit should be set to about 70–80% for uninsured mortgages, and to about 90% for those with mortgage insurance.

scholarly journals Analisis Premi Asuransi Jiwa Menggunakan Model Cox Proportional Hazard

2019 ◽  
Vol 1 (2) ◽  
pp. 88
Author(s):  
Firda Anisa Fajarini ◽  
Mohamat Fatekurohman
Keyword(s):  
Survival Analysis ◽  
Life Insurance ◽  
Hazard Model ◽  
Insurance Premium ◽  
Cox Proportional Hazard Model ◽  
Proportional Hazard ◽  
Proportional Hazard Model ◽  
Final Model ◽  
Customer Data ◽  
Cox Proportional Hazard

<p>Cox proportional hazard model is a regression model that is used to see the factors that cause an event. The survival analysis used in this research is the period of time the client is able to pay the life insurance premium using Cox proportional hazard model with Breslow method.The purpose of this research is to know how sex, age, insured money, job, method of payment of premium, premium, and type of product can influence the level of ability of client to make payment of life insurance premium based on customer data from PT. BRI Life Insurance Branch of Jember in 2007.The result of this research is the final model of Cox proportional hazard obtained from several variables which have significant influence with simultaneous and partial significance test is the variable of insured money (<em>X<sub>3</sub></em>), variable of payment method of premium (<em>X<sub>5</sub></em>), premium variable (<em>X<sub>6</sub></em>) , and insurance product variable (<em>X<sub>7</sub></em>) . The four variables are said to have a significant effect on the model, so that the final model of Cox proportional hazard is obtained that consists of the parameter estimation (<em>β</em>) value of each variable</p><p> </p><p><strong>Keywords</strong><strong> : </strong>survival analysis; cox proportional hazard model; breslow method; life insurance.</p>

scholarly journals Debt cap regulations in mortgage lending

2021 ◽  
Vol 8 (2) ◽  
pp. 110-145
Author(s):  
Donát Kim
Keyword(s):  
Risk Factors ◽  
Mortgage Lending ◽  
Maximum Amount ◽  
Income Ratio ◽  
National Bank

In this paper I study debt cap regulations in retail mortgage lending in Hungary introduced by the National Bank of Hungary. I believe the introduction of debt cap regulations was justified, but the toolkit applied should be reviewed. After studying international examples and reviewing the literature, I have concluded that LTV (loan-to-value) regulation correspond to European practice and researchers’ findings. While the introduction of LTI (loan-to-income) ratio should be considered to replace PTI (payment-to-income) ratio, as it is more stable in time and there is no incentive to switch between the increase of risk factors and the increase of the maximum amount regulated by law by PTI regulation.

scholarly journals Insurance innovation with mortgage loan

2020 ◽  
Vol 2020 (1) ◽  
pp. 139-148
Author(s):  
Ekaterina Vladimirovna Sokolova ◽  
Tatyana Vladimirovna Kotova ◽  
Elena Vladimirovna Chernikina
Keyword(s):  
Insurance Industry ◽  
Effective Interaction ◽  
Analytical Data ◽  
Mortgage Lending ◽  
Mortgage Loan ◽  
Insurance Company ◽  
Mortgage Loans ◽  
Customer Data ◽  
Mortgage Insurance ◽  
The Creation

The article highlights the problem of digital transformation of the insurance sector, which can facilitate the effective interaction of all participants, increase information transparency and improve the quality of analytical data, optimize the business processes of insurers, and involve a wider range of insurance services in the online environment. To simplify the work with customer data in the processes of automated data collection, analysis and storage, it is necessary to create a single database. Such a base can be an insurance history bureau. The development strategy of the insurance industry of the Russian Federation for 2019-2021 provides for the creation and use of insurance histories for various types of insurance by analogy with credit histories. Given that in recent years, along with traditional types of lending, mortgage lending has developed, it is proposed to create a mortgage insurance history bureau. Based on the data on issued and prematurely repaid mortgage loans for 2012-2018, the volumes of this information bureau were determined and a forecast was made for 2019-2023 on the number of existing mortgage loans. A business model for the creation and functioning of a mortgage insurance history bureau is proposed, and a cost-effectiveness calculation is made, confirming the feasibility of this proposal. The process of creating and operating a mortgage insurance history bureau is illustrated, which includes two stages: a preparatory stage for development of a regulatory document of the Central Bank establishing an access procedure and a list of information provided by insurers, amendments and additions to the relevant federal law, software development and definition of a bureau administrator insurance histories; an operation stage for the transfer of the client's dossier with the main parameters of the loan to the credit history bureau after acquiring a mortgage, transfer of the insurance company information about the concluded insurance contract for insurance bureau, storing information during the term of the loan, and five years after his retirement.

Rationales of Mortgage Insurance Premium Structures

1997 ◽  
Vol 14 (3) ◽  
pp. 359-378
Author(s):  
Barry Dennis ◽  
Chionglong Kuo ◽  
Tyler Yang
Keyword(s):  
Insurance Premium ◽  
Mortgage Insurance

A bootstrap approach for pricing crop yield insurance

2017 ◽  
Vol 9 (2) ◽  
pp. 225-237 ◽  
Author(s):  
Yugu Xiao ◽  
Ke Wang ◽  
Lysa Porth
Keyword(s):  
Kernel Method ◽  
Crop Insurance ◽  
Bootstrap Method ◽  
Insurance Premium ◽  
Point Estimation ◽  
Point Estimate ◽  
Cost Ratio ◽  
Interval Estimate ◽  
Content Type ◽  
Additional Information

Purpose While crop insurance ratemaking has been studied for many decades, it is still faced with many challenges. Crop insurance premium rates (PRs) are traditionally determined only by point estimation, and this approach may lead to uncertainty because it is sensitive to the underwriter’s assumptions regarding the trend, yield distribution, and other issues such as data scarcity and credibility. Thus, the purpose of this paper is to obtain the interval estimate for the PR, which can provide additional information about the accuracy of the point estimate. Design/methodology/approach A bootstrap method based on the loss cost ratio ratemaking approach is proposed. Using Monte Carlo experiments, the performance of this method is tested against several popular methods. To measure the efficiency of the confidence interval (CI) estimators, the actual coverage probabilities and the average widths of these intervals are calculated. Findings The proposed method is shown to be as efficient as the non-parametric kernel method, and has the features of flexibility and robustness, and can provide insight for underwriters regarding uncertainty based on the width of the CI. Originality/value Comprehensive comparisons are conducted to show the advantage and the efficiency of the proposed method. In addition, a significant empirical example is given to show how to use the CIs to support ratemaking.

Comparative Effectiveness Of Seed Treating And Foliar Insecticides Against Sucking Pests Of Cotton And Impact On Their Natural Enemies

2013 ◽  
Vol 38 (1) ◽  
pp. 61-70 ◽  
Author(s):  
SMA Hossain ◽  
MA Baque ◽  
MR Amin
Keyword(s):  
Natural Enemies ◽  
Untreated Control ◽  
Seed Treatment ◽  
Foliar Spray ◽  
Cost Ratio ◽  
Research Station ◽  
Benefit Cost Ratio ◽  
Benefit Cost ◽  
Thrips Population ◽  
Cotton Cultivar

The Imidacloprid insecticide, Gaucho 70 WS at 1.5, 2.5, 3.5, 4.5 and 5.5 g/kg seed was used as seed treatment and monocrotophos 40 WSC at 1120 ml/ha was applied as foliar spray on CB9 cotton cultivar to suppress aphid, whitefly and thrips, and impact on their natural enemies during 2008-2011 at the Regional Cotton Research Station, Dinajpur, Bangladesh. The activity of natural enemies, such as ladybird beetle, lacewing, syrphid, and spider population on the sucking pests attacking cotton cultivar CB9 and yield of cotton were recorded. Imidacloprid significantly reduced aphid, whitefly, and thrips population on cotton crops compared to untreated control or foliar spray of monocrotophos 40 WSC at 1120 ml/ha. Ladybird beetles, lacewings, syrphids, and spiders were abundant in the field but their population decreased in the treated plots compared to untreated control. The CB9 cotton cultivar produced significantly higher yield (1.73 t/ha) with a benefit cost ratio 12.47 when seeds were treated with Imidacloprid at 5.5 g/kg fuzzy seed. This study indicated that Imidacloprid (Gaucho 70 WS) used as a seed treatment may be suggested to the cotton growers for controlling sucking pests. Bangladesh J. Agril. Res. 38(1): 61-70, March 2013 DOI: http://dx.doi.org/10.3329/bjar.v38i1.15190

Effect of Sunflower Residues and Herbicide on Weed Suppression, Grain Yield and Economics of Transplanted Aman Rice

2020 ◽  
Vol 23 (1) ◽  
pp. 47-58
Author(s):  
SS Tanu ◽  
P Biswas ◽  
S Ahmed ◽  
SC Samanta
Keyword(s):  
Grain Yield ◽  
Dry Matter ◽  
Block Design ◽  
Weed Suppression ◽  
Cost Ratio ◽  
Gross Margin ◽  
Weed Density ◽  
Benefit Cost Ratio ◽  
Hand Weeding ◽  
Environmentally Sound

A field experiment was conducted at Agronomy Field Laboratory, Patuakhali Science and Technology University, Dumki, Patuakhali from July 2018 to November 2018 to evaluate the effect of sunflower residues and herbicides on the yield and economic performance of transplanted Aman rice. Weed control methods tested were T1 = weedy check (Unweeded control), T2 = Weed-free check by hand weeding twice, T3 = Pendimethalin, T4 = Pretilachlor, T5 = Butachlor, T6 = Pyrazosulfuron ethyl, T7 = Bensulfuron methyl + Acetachlor, T8 = Bispyriback sodium, T9 = 2,4-D amine, T10 = MCPA, T11 = Sunflower residues, T12 = Sunflower residues + 100% Pyrazosulfuron ethyl, T13 = Sunflower residues + 75% Pyrazosulfuron ethyl, T14 = Sunflower residues + 50% Pyrazosulfuron ethyl. The experiment was laid out in a randomized complete block design with fourteen treatments replicated thrice. Weedy check registered significantly the highest total weed density (354.67 m-2) and total weed dry matter (51.81 g-2) while weed-free treatment by hand weeding twice recorded significantly the lowest total weed density (6.67 m-2) and total weed dry matter 0.49 g-2) . Weedy check produced the highest weed index (34.24%) and hand weeding produced the lowest. Among different herbicides applied alone, butachlor had the lowest total weed density (15 m-2) and total weed dry matter (6.43 g-2) after hand weeding. Hand weeding recorded the highest grain yield (5.14 t ha-1) which was statistically similar to pendimethalin, pretilachlor, butachlor, bensulfuron methyl + acetachlor and sunflower residues + 100% pyrazosulfuron ethyl. Higher grain yield was attributed to a higher number of panicle m-2, number of filled grains panicle-1 and 1000-grain weight. The highest gross margin (22955 Tk. ha-1) and benefit-cost ratio (1.32) were obtained from butachlor. Integration of sunflower residues with pyrazosulfuron ethyl produced effective weed suppression and satisfactory yield comparable to butachlor. Although the integration is less profitable than butachlor the farmers can use this technology as a feasible and environmentally sound approach in transplanted Aman rice field. Bangladesh Agron. J. 2020, 23(1): 47-58

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