IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v7n21992p169-186.html
   My bibliography  Save this article

Cost, Value, and Hybrid-Based Underwriting Criteria

Author

Listed:

Abstract

This 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.

Suggested Citation

  • M. Atef Sharkawy & Walter C. Barnes, 1992. "Cost, Value, and Hybrid-Based Underwriting Criteria," Journal of Real Estate Research, American Real Estate Society, vol. 7(2), pages 169-186.
  • Handle: RePEc:jre:issued:v:7:n:2:1992:p:169-186
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol07n02/v07p169.pdf
    File Function: Full text
    Download Restriction: no

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:7:n:2:1992:p:169-186. See general 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). General contact details of provider: http://www.aresnet.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.