Mortgage Liquidity Facilities

This note brings together some of the policy lessons learnt in the creation of mortgage liquidity facilities around the world. It looks at the main benefits which can be derived from the creation of a mortgage liquidity facility and the conditions...

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Main Authors: Hassler, Olivier, Walley, Simon
Format: Policy Note
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2012/01/16388290/mortgage-liquidity-facilities
http://hdl.handle.net/10986/18372
id okr-10986-18372
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
ACCOUNTING FRAMEWORK
ACTIVE MARKET
AFFORDABLE HOUSING
ARBITRAGE
ASSET LIABILITY MANAGEMENT
AUDITS
BALANCE SHEET
BANK LOAN
BANK SYSTEM
BANKING INSTITUTION
BANKING SYSTEM
BANKRUPTCY
BANKRUPTCY LAW
BASIS POINTS
BENCHMARK BONDS
BOND
BOND INVESTORS
BOND ISSUANCE
BOND ISSUANCES
BOND ISSUES
BOND MARKET
BOND MARKETS
BONDS
BRANCH NETWORK
BULLET REPAYMENT
CAPITAL ADEQUACY
CAPITAL MARKET
CAPITAL MARKET FUNDING
CAPITAL MARKETS
CAPITAL RATIOS
CAPITALIZATION
CASE OF BANKRUPTCY
CENTRAL BANK
CENTRAL BANKS
CHECKS
COLLATERAL
COLLATERALIZATION
COLLATERALS
COMMERCIAL BANKING
COMMERCIAL BANKS
COMMUNITY INVESTMENT
CONFIDENTIALITY
CONFLICT OF INTERESTS
CORPORATE GOVERNANCE
COST OF FUND
COST OF FUNDS
COVER POOL
CREDIT BUREAU
CREDIT BUREAUS
CREDIT ENHANCEMENT
CREDIT RATING
CREDIT RISK
CREDIT UNIONS
CREDITS
CRITICAL MASS
DEBT ISSUANCE
DEBT OBLIGATIONS
DEFERRED PAYMENT
DEPENDENT
DEPOSIT
DEPOSIT INSURANCE
DEPOSIT INSURANCE FUND
DEPOSITS
DISBURSEMENT
DISCOUNT RATE
DIVIDENDS
DOWN PAYMENTS
DUE DILIGENCE
ECONOMIC DEVELOPMENT
EMERGING MARKETS
EQUITY HOLDER
EXPOSURE
FINANCE PRODUCTS
FINANCIAL CRISIS
FINANCIAL INFORMATION
FINANCIAL INSTITUTION
FINANCIAL INSTITUTIONS
FINANCIAL MARKET
FINANCIAL RISKS
FINANCIAL SERVICES
FIXED INCOME
FIXED INCOME MARKET
FIXED RATE
FIXED RATES
FLOATING RATE
FOREIGN CURRENCY
FOREIGN EXCHANGE
FOREIGN EXCHANGE RISK
GENERAL BANKRUPTCY
GENERAL BANKRUPTCY LAW
GENERAL DEBT
GOOD GOVERNANCE
GOVERNMENT BACKING
GOVERNMENT BONDS
GOVERNMENT DEBT
GOVERNMENT DEBT MARKET
GOVERNMENT GUARANTEE
GOVERNMENT SUPPORT
HOLDING
HOME LOAN
HOME LOANS
HOME OWNERSHIP
HOUSING FINANCE
HOUSING LOAN
HOUSING LOANS
INCOME GROUPS
INCOME TAX
INFLATION
INFORMATION SYSTEMS
INSOLVENCY
INSURANCE
INSURANCE COMPANIES
INTEREST RATE
INTEREST RATE RISK
INTEREST RATES
INVESTMENT ACTIVITIES
INVESTMENT INCOME
INVESTOR CONFIDENCE
ISSUANCE OF BONDS
ISSUANCES
JUDICIARY
LENDER
LENDER OF LAST RESORT
LENDERS
LENDING REQUIREMENTS
LIABILITY
LIABILITY SIDE
LIEN
LIQUIDITY
LIQUIDITY CRISIS
LIQUIDITY FACILITIES
LIQUIDITY FACILITY
LIQUIDITY RISK
LIQUIDITY RISKS
LIQUIDITY SUPPORT
LOAN
LOAN MATURITIES
LOAN PORTFOLIO
LOAN PORTFOLIOS
LOCAL BOND MARKET
LOCAL CURRENCY
LONG TERM ASSETS
LONG TERM LIABILITIES
MANDATE
MARKET DEVELOPMENT
MARKET DISTORTION
MARKET DISTORTIONS
MARKET FAILURE
MARKET INFORMATION
MARKET PRACTICES
MARKET SHARE
MARKET VALUE
MARKETABLE BONDS
MATURE MARKETS
MATURITY
MATURITY MISMATCH
MATURITY TRANSFORMATION
MORTGAGE
MORTGAGE BANKS
MORTGAGE INTEREST
MORTGAGE INTEREST RATES
MORTGAGE LENDING
MORTGAGE LOANS
MORTGAGE MARKET
MORTGAGE MARKETS
MORTGAGE PORTFOLIO
MORTGAGE PORTFOLIOS
MORTGAGES
NATIONAL BANK
OPERATIONAL EFFICIENCY
OWNERSHIP RIGHTS
OWNERSHIP STRUCTURE
PENSION
PENSION FUNDS
PORTFOLIO
PORTFOLIO OF LOANS
PORTFOLIO OF MORTGAGES
PORTFOLIOS
POTENTIAL BORROWERS
PREPAYMENT
PREPAYMENTS
PRIMARY LENDERS
PRIMARY MARKET
PRIVATE EQUITY
PRIVATE SECTOR DEVELOPMENT
PROFIT MARGIN
PROMISSORY NOTES
PUBLIC DEBT
PUBLIC-PRIVATE PARTNERSHIPS
REAL ESTATE
REGISTRATION SYSTEMS
REGULATOR
REGULATORY FRAMEWORK
REPOSSESSION
RESIDENTIAL MORTGAGE
RETURN
RISK MANAGEMENT
RISK PROFILE
RISK WEIGHTING
SAVINGS
SAVINGS BANKS
SAVINGS INSTITUTIONS
SECONDARY MORTGAGE
SECONDARY MORTGAGE MARKET
SECONDARY MORTGAGE MARKETS
SECURITIES
SECURITIES REGULATION
SECURITY INTEREST
SETTLEMENT
SETTLEMENT SYSTEMS
SHAREHOLDER
SHAREHOLDERS
SMALL LENDERS
SYSTEMIC RISK
TAX
TAX FRAMEWORK
TAX TREATMENTS
TERM DEPOSITS
TRANSACTION
TRANSACTIONS COSTS
TRANSFER OWNERSHIP
TRANSITION ECONOMIES
TRANSPARENCY
TURNOVER
UNDERLYING ASSETS
UNDERLYING MORTGAGE
UNDERLYING MORTGAGES
UNSECURED BONDS
VALUATION
YIELD CURVE
spellingShingle ACCOUNTING
ACCOUNTING FRAMEWORK
ACTIVE MARKET
AFFORDABLE HOUSING
ARBITRAGE
ASSET LIABILITY MANAGEMENT
AUDITS
BALANCE SHEET
BANK LOAN
BANK SYSTEM
BANKING INSTITUTION
BANKING SYSTEM
BANKRUPTCY
BANKRUPTCY LAW
BASIS POINTS
BENCHMARK BONDS
BOND
BOND INVESTORS
BOND ISSUANCE
BOND ISSUANCES
BOND ISSUES
BOND MARKET
BOND MARKETS
BONDS
BRANCH NETWORK
BULLET REPAYMENT
CAPITAL ADEQUACY
CAPITAL MARKET
CAPITAL MARKET FUNDING
CAPITAL MARKETS
CAPITAL RATIOS
CAPITALIZATION
CASE OF BANKRUPTCY
CENTRAL BANK
CENTRAL BANKS
CHECKS
COLLATERAL
COLLATERALIZATION
COLLATERALS
COMMERCIAL BANKING
COMMERCIAL BANKS
COMMUNITY INVESTMENT
CONFIDENTIALITY
CONFLICT OF INTERESTS
CORPORATE GOVERNANCE
COST OF FUND
COST OF FUNDS
COVER POOL
CREDIT BUREAU
CREDIT BUREAUS
CREDIT ENHANCEMENT
CREDIT RATING
CREDIT RISK
CREDIT UNIONS
CREDITS
CRITICAL MASS
DEBT ISSUANCE
DEBT OBLIGATIONS
DEFERRED PAYMENT
DEPENDENT
DEPOSIT
DEPOSIT INSURANCE
DEPOSIT INSURANCE FUND
DEPOSITS
DISBURSEMENT
DISCOUNT RATE
DIVIDENDS
DOWN PAYMENTS
DUE DILIGENCE
ECONOMIC DEVELOPMENT
EMERGING MARKETS
EQUITY HOLDER
EXPOSURE
FINANCE PRODUCTS
FINANCIAL CRISIS
FINANCIAL INFORMATION
FINANCIAL INSTITUTION
FINANCIAL INSTITUTIONS
FINANCIAL MARKET
FINANCIAL RISKS
FINANCIAL SERVICES
FIXED INCOME
FIXED INCOME MARKET
FIXED RATE
FIXED RATES
FLOATING RATE
FOREIGN CURRENCY
FOREIGN EXCHANGE
FOREIGN EXCHANGE RISK
GENERAL BANKRUPTCY
GENERAL BANKRUPTCY LAW
GENERAL DEBT
GOOD GOVERNANCE
GOVERNMENT BACKING
GOVERNMENT BONDS
GOVERNMENT DEBT
GOVERNMENT DEBT MARKET
GOVERNMENT GUARANTEE
GOVERNMENT SUPPORT
HOLDING
HOME LOAN
HOME LOANS
HOME OWNERSHIP
HOUSING FINANCE
HOUSING LOAN
HOUSING LOANS
INCOME GROUPS
INCOME TAX
INFLATION
INFORMATION SYSTEMS
INSOLVENCY
INSURANCE
INSURANCE COMPANIES
INTEREST RATE
INTEREST RATE RISK
INTEREST RATES
INVESTMENT ACTIVITIES
INVESTMENT INCOME
INVESTOR CONFIDENCE
ISSUANCE OF BONDS
ISSUANCES
JUDICIARY
LENDER
LENDER OF LAST RESORT
LENDERS
LENDING REQUIREMENTS
LIABILITY
LIABILITY SIDE
LIEN
LIQUIDITY
LIQUIDITY CRISIS
LIQUIDITY FACILITIES
LIQUIDITY FACILITY
LIQUIDITY RISK
LIQUIDITY RISKS
LIQUIDITY SUPPORT
LOAN
LOAN MATURITIES
LOAN PORTFOLIO
LOAN PORTFOLIOS
LOCAL BOND MARKET
LOCAL CURRENCY
LONG TERM ASSETS
LONG TERM LIABILITIES
MANDATE
MARKET DEVELOPMENT
MARKET DISTORTION
MARKET DISTORTIONS
MARKET FAILURE
MARKET INFORMATION
MARKET PRACTICES
MARKET SHARE
MARKET VALUE
MARKETABLE BONDS
MATURE MARKETS
MATURITY
MATURITY MISMATCH
MATURITY TRANSFORMATION
MORTGAGE
MORTGAGE BANKS
MORTGAGE INTEREST
MORTGAGE INTEREST RATES
MORTGAGE LENDING
MORTGAGE LOANS
MORTGAGE MARKET
MORTGAGE MARKETS
MORTGAGE PORTFOLIO
MORTGAGE PORTFOLIOS
MORTGAGES
NATIONAL BANK
OPERATIONAL EFFICIENCY
OWNERSHIP RIGHTS
OWNERSHIP STRUCTURE
PENSION
PENSION FUNDS
PORTFOLIO
PORTFOLIO OF LOANS
PORTFOLIO OF MORTGAGES
PORTFOLIOS
POTENTIAL BORROWERS
PREPAYMENT
PREPAYMENTS
PRIMARY LENDERS
PRIMARY MARKET
PRIVATE EQUITY
PRIVATE SECTOR DEVELOPMENT
PROFIT MARGIN
PROMISSORY NOTES
PUBLIC DEBT
PUBLIC-PRIVATE PARTNERSHIPS
REAL ESTATE
REGISTRATION SYSTEMS
REGULATOR
REGULATORY FRAMEWORK
REPOSSESSION
RESIDENTIAL MORTGAGE
RETURN
RISK MANAGEMENT
RISK PROFILE
RISK WEIGHTING
SAVINGS
SAVINGS BANKS
SAVINGS INSTITUTIONS
SECONDARY MORTGAGE
SECONDARY MORTGAGE MARKET
SECONDARY MORTGAGE MARKETS
SECURITIES
SECURITIES REGULATION
SECURITY INTEREST
SETTLEMENT
SETTLEMENT SYSTEMS
SHAREHOLDER
SHAREHOLDERS
SMALL LENDERS
SYSTEMIC RISK
TAX
TAX FRAMEWORK
TAX TREATMENTS
TERM DEPOSITS
TRANSACTION
TRANSACTIONS COSTS
TRANSFER OWNERSHIP
TRANSITION ECONOMIES
TRANSPARENCY
TURNOVER
UNDERLYING ASSETS
UNDERLYING MORTGAGE
UNDERLYING MORTGAGES
UNSECURED BONDS
VALUATION
YIELD CURVE
Hassler, Olivier
Walley, Simon
Mortgage Liquidity Facilities
description This note brings together some of the policy lessons learnt in the creation of mortgage liquidity facilities around the world. It looks at the main benefits which can be derived from the creation of a mortgage liquidity facility and the conditions under which they can operate most effectively. The note details some of the pre-conditions necessary for the creation of a liquidity facility. There is summary of some of the key techniques used in obtaining security over the mortgage collateral. Lastly two important aspects which are crucial to building confidence in mortgage liquidity facilities are how they are regulated and their corporate governance. The note brings in relevant examples from liquidity facilities which have been set up as far back as 1987 (Malaysia), from developed countries (France) and from facilities still under discussion (West Africa). Overall the note points to the valuable developmental role that mortgage liquidity facilities can play in nascent mortgage markets as an intermediary between capital markets in the primary mortgage markets. This is especially the case in markets where the mortgage lending infra-structure and environment have not developed sufficiently to allow for other more sophisticated alternatives such as securitization or covered bonds.
format Economic & Sector Work :: Policy Note
author Hassler, Olivier
Walley, Simon
author_facet Hassler, Olivier
Walley, Simon
author_sort Hassler, Olivier
title Mortgage Liquidity Facilities
title_short Mortgage Liquidity Facilities
title_full Mortgage Liquidity Facilities
title_fullStr Mortgage Liquidity Facilities
title_full_unstemmed Mortgage Liquidity Facilities
title_sort mortgage liquidity facilities
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2012/01/16388290/mortgage-liquidity-facilities
http://hdl.handle.net/10986/18372
_version_ 1764440768908361728
spelling okr-10986-183722021-04-23T14:03:45Z Mortgage Liquidity Facilities Hassler, Olivier Walley, Simon ACCOUNTING ACCOUNTING FRAMEWORK ACTIVE MARKET AFFORDABLE HOUSING ARBITRAGE ASSET LIABILITY MANAGEMENT AUDITS BALANCE SHEET BANK LOAN BANK SYSTEM BANKING INSTITUTION BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAW BASIS POINTS BENCHMARK BONDS BOND BOND INVESTORS BOND ISSUANCE BOND ISSUANCES BOND ISSUES BOND MARKET BOND MARKETS BONDS BRANCH NETWORK BULLET REPAYMENT CAPITAL ADEQUACY CAPITAL MARKET CAPITAL MARKET FUNDING CAPITAL MARKETS CAPITAL RATIOS CAPITALIZATION CASE OF BANKRUPTCY CENTRAL BANK CENTRAL BANKS CHECKS COLLATERAL COLLATERALIZATION COLLATERALS COMMERCIAL BANKING COMMERCIAL BANKS COMMUNITY INVESTMENT CONFIDENTIALITY CONFLICT OF INTERESTS CORPORATE GOVERNANCE COST OF FUND COST OF FUNDS COVER POOL CREDIT BUREAU CREDIT BUREAUS CREDIT ENHANCEMENT CREDIT RATING CREDIT RISK CREDIT UNIONS CREDITS CRITICAL MASS DEBT ISSUANCE DEBT OBLIGATIONS DEFERRED PAYMENT DEPENDENT DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE FUND DEPOSITS DISBURSEMENT DISCOUNT RATE DIVIDENDS DOWN PAYMENTS DUE DILIGENCE ECONOMIC DEVELOPMENT EMERGING MARKETS EQUITY HOLDER EXPOSURE FINANCE PRODUCTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL RISKS FINANCIAL SERVICES FIXED INCOME FIXED INCOME MARKET FIXED RATE FIXED RATES FLOATING RATE FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE RISK GENERAL BANKRUPTCY GENERAL BANKRUPTCY LAW GENERAL DEBT GOOD GOVERNANCE GOVERNMENT BACKING GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT GUARANTEE GOVERNMENT SUPPORT HOLDING HOME LOAN HOME LOANS HOME OWNERSHIP HOUSING FINANCE HOUSING LOAN HOUSING LOANS INCOME GROUPS INCOME TAX INFLATION INFORMATION SYSTEMS INSOLVENCY INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATE RISK INTEREST RATES INVESTMENT ACTIVITIES INVESTMENT INCOME INVESTOR CONFIDENCE ISSUANCE OF BONDS ISSUANCES JUDICIARY LENDER LENDER OF LAST RESORT LENDERS LENDING REQUIREMENTS LIABILITY LIABILITY SIDE LIEN LIQUIDITY LIQUIDITY CRISIS LIQUIDITY FACILITIES LIQUIDITY FACILITY LIQUIDITY RISK LIQUIDITY RISKS LIQUIDITY SUPPORT LOAN LOAN MATURITIES LOAN PORTFOLIO LOAN PORTFOLIOS LOCAL BOND MARKET LOCAL CURRENCY LONG TERM ASSETS LONG TERM LIABILITIES MANDATE MARKET DEVELOPMENT MARKET DISTORTION MARKET DISTORTIONS MARKET FAILURE MARKET INFORMATION MARKET PRACTICES MARKET SHARE MARKET VALUE MARKETABLE BONDS MATURE MARKETS MATURITY MATURITY MISMATCH MATURITY TRANSFORMATION MORTGAGE MORTGAGE BANKS MORTGAGE INTEREST MORTGAGE INTEREST RATES MORTGAGE LENDING MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MORTGAGE PORTFOLIO MORTGAGE PORTFOLIOS MORTGAGES NATIONAL BANK OPERATIONAL EFFICIENCY OWNERSHIP RIGHTS OWNERSHIP STRUCTURE PENSION PENSION FUNDS PORTFOLIO PORTFOLIO OF LOANS PORTFOLIO OF MORTGAGES PORTFOLIOS POTENTIAL BORROWERS PREPAYMENT PREPAYMENTS PRIMARY LENDERS PRIMARY MARKET PRIVATE EQUITY PRIVATE SECTOR DEVELOPMENT PROFIT MARGIN PROMISSORY NOTES PUBLIC DEBT PUBLIC-PRIVATE PARTNERSHIPS REAL ESTATE REGISTRATION SYSTEMS REGULATOR REGULATORY FRAMEWORK REPOSSESSION RESIDENTIAL MORTGAGE RETURN RISK MANAGEMENT RISK PROFILE RISK WEIGHTING SAVINGS SAVINGS BANKS SAVINGS INSTITUTIONS SECONDARY MORTGAGE SECONDARY MORTGAGE MARKET SECONDARY MORTGAGE MARKETS SECURITIES SECURITIES REGULATION SECURITY INTEREST SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDER SHAREHOLDERS SMALL LENDERS SYSTEMIC RISK TAX TAX FRAMEWORK TAX TREATMENTS TERM DEPOSITS TRANSACTION TRANSACTIONS COSTS TRANSFER OWNERSHIP TRANSITION ECONOMIES TRANSPARENCY TURNOVER UNDERLYING ASSETS UNDERLYING MORTGAGE UNDERLYING MORTGAGES UNSECURED BONDS VALUATION YIELD CURVE This note brings together some of the policy lessons learnt in the creation of mortgage liquidity facilities around the world. It looks at the main benefits which can be derived from the creation of a mortgage liquidity facility and the conditions under which they can operate most effectively. The note details some of the pre-conditions necessary for the creation of a liquidity facility. There is summary of some of the key techniques used in obtaining security over the mortgage collateral. Lastly two important aspects which are crucial to building confidence in mortgage liquidity facilities are how they are regulated and their corporate governance. The note brings in relevant examples from liquidity facilities which have been set up as far back as 1987 (Malaysia), from developed countries (France) and from facilities still under discussion (West Africa). Overall the note points to the valuable developmental role that mortgage liquidity facilities can play in nascent mortgage markets as an intermediary between capital markets in the primary mortgage markets. This is especially the case in markets where the mortgage lending infra-structure and environment have not developed sufficiently to allow for other more sophisticated alternatives such as securitization or covered bonds. 2014-05-15T21:29:34Z 2014-05-15T21:29:34Z 2012 http://documents.worldbank.org/curated/en/2012/01/16388290/mortgage-liquidity-facilities http://hdl.handle.net/10986/18372 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work