European Mortgage Market. Global View 1992-2003

The development of European Mortgage Market and its current position in relation to volume, growth, prices, interest rates, new products and an analysis of mortgage integration is the focus of this paper. The recent creation of the European Mortgage Finance Agency (EMFA), which attempts to create a single European securitization, is an important step towards achieving integration within the great goal of Financial Integration of the European Union. Obstacles to integration, potential members of the EMFA and its main goals, and advantages, are discussed in the innovative section of our document. Besides that, the paper deals with three important aspects of the Mortgage Market, taken EU as a whole: Its functioning. Other aspects such as transactions cost, requirements to Credit Institutions of transparency (European Code of Conduct), and a classification of the different mortgage products on the market, are also taken into consideration. Refinancing in Europe (as compared to USA). The Secondary market of financial institutions funding in relation to mortgage bonds and mortgage backed securities performance and their principal characteristics and differences are also explained. The influence of European mortgage markets on the economy and how they may affect private investment and consumption, household debt (which continues to increase every year), and the performance of the financial institutions (high competitiveness) are other important points which are considered.