Effect of Loan Value and Collateral on Value of Mortgage Default

Rais Ahmad Itoo, Selvarasu Appasamy Mutharasu and José António Filipe
Authors registered in the RePEc Author Service: Selvarasu A. ()

International Journal of Finance, Insurance and Risk Management, 2013, vol. 3, issue 4, 635

Abstract: This study explore the factors influencing mortgage loan default by using the data of mortgage default case from Jammu and Kashmir Bank. To achieve the study objectives sixteen variables are taken. The variables are categorized into three dimensions as borrower’s profile, loan value contents and collateral security. The tools used for analysis of data describing mortgage loan defaulter’s are chi-square, regression, ANOVA, and logistic regression through SPSS 18.0. The results indicate that the borrower’s gender, borrower’s age, borrower’s marital status, the borrower’s income, loan rate, loan type, loan amount, amount repaid, LTV, LTI, form of collateral security, Value of collateral security, purpose of loan and secondary finance on collateral security are significantly positively correlated with the defaulter’s outstanding loan amount. While as education qualification of borrower is significantly negatively correlated with defaulter’s outstanding loan amount. Logistic regression results indicate that income, secondary finance on collateral security and interest rate are mainly responsible for mortgage default.

Keywords: Mortgage Default; Loan value contents; Collateral; LTV; LTI; Logistic regression. (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journalfirm.com/journal/88/download (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:3:y:2013:i:4:p:635

Access Statistics for this article

More articles in International Journal of Finance, Insurance and Risk Management from International Journal of Finance, Insurance and Risk Management
Bibliographic data for series maintained by Marios Agiomavritis ().