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Intended Audience: Public or private sector official tasked with the responsibility of promoting and regulating their housing and mortgage banking industries, implementing an "MBS program or simply increasing their home ownership rates will benefit from this all encompassing course. This course will also integrate Islamic lending practices.
Course
Objectives:
This course is designed to provide the necessary elements of an effective housing and mortgage finance system implementation plan. Targeted specifically to developing country scenarios, it will take the participant from the initial steps of required legislation in banking and real property on through primary and secondary market development and their integration into a holistic capital market program.
Course
Outline
Introduction
- The history and evolution of the mortgage banking and mortgage backed securities markets and their contribution towards the development of Western Economies and their housing industries. Special emphasis will be given to historical successes but also more importantly the recent problems of the system
Legal and Regulatory Infrastructure
- Laws and regulations affecting property rights, including the nature of titles; title registration, secured transactions in real property; administrative procedures, foreclosure and investor protection regulations with comparative case studies
Primary Mortgage Development and Institutions
- Beginning with the basic required legal and regulatory framework including licensing and capitalization to sources of funding, effective management guidelines, the lending process, standardization of documents and developing solid underwriting guidelines. This segment of the course will cover all aspects of a functioning primary mortgage market including the development, and role of third party players such as title and mortgage insurance companies, appraisal, credit reporting and escrow companies
Secondary Mortgage Market Development
- Establishing the legal and regulatory infrastructure of an operating secondary mortgage market that promotes confidence and transparency in the global investment markets
- Creating an MBS program with comparative analysis of structure, type of instruments, pricing and valuation, credit enhancement and alternatives, disclosure and many other issues
- The role of institutional and third party players including issuers of mortgage backed securities, capital markets, rating agencies, brokers, bankers, retirement systems, insurance companies and individuals
- Creating and marketing techniques for investor acceptance
Field Visits
- A field trip to either Fannie Mae or Freddie Mac is planned (depending upon availability), along with an MBS Dealer/Broker Firm
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