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Global Financial Crisis and Mortgage Finance and Valuation Problems: An Assesment of the US and Turkish Mortgage Systems

Author

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  • Coskun, Yener

Abstract

After emerging from the U.S. real estate and financial markets, financial crisis has gradually become global. Due to both primary and secondary mortgage market problems in the U.S. are accepted as the essential reasons of the current crisis, it is believed that financial markets and real estate sector need a new design. In this paper, the author condiders the importance of real estate valuation in the origination of crisis and whether Turkish mortgage market has similar problems with the U.S. It is argued in the paper that real estate valuation is one of the most critical reasons of crisis. To implement effectively of the real estate valuation, market culture and knowledge are of great importance expected to developed by market players, NGOs, SROs, regulators, academicians etc. The author suggests that brand new establishment of The Association of Appraisal Experts of Turkey is important for the development of sound real estate valuation. But the next and bigger step should be a new property valuation legislation which should cover all relevant (and possible) real estate valuation rules and practices of the Turkish law/commercial life.

Suggested Citation

  • Coskun, Yener, 2010. "Global Financial Crisis and Mortgage Finance and Valuation Problems: An Assesment of the US and Turkish Mortgage Systems," MPRA Paper 35301, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35301
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    References listed on IDEAS

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    7. Kristopher Gerardi & Andreas Lehnert & Shane M. Sherlund & Paul Willen, 2008. "Making Sense of the Subprime Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(2 (Fall)), pages 69-159.
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    Cited by:

    1. Coskun, Yener, 2010. "An Analysis of the Strenghts and Weaknesses of the Turkish Real Estate Market," MPRA Paper 28361, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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