Cost, Value, and Hybrid-Based Underwriting Criteria
AbstractThis study examines the correlation between loan-to-value ratios and probability of default, and tests alternative cost-based default models, using data from the portfolios of FSLIC and a major regional lender. The theoretical premises for the research are synthesized from a review of the linkages between supply and demand for space, and for capital; and of the appraisal process and its reliability. Two major conclusions are drawn from statistical evidence: (1) there is no apparent correlation between value-based underwriting criteria and between default, and (2) hard cost-based criteria correlate closely to probability of default.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 7 (1992)
Issue (Month): 2 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster).
If references are entirely missing, you can add them using this form.