Immobilienfinanzierung: das Beratungs- und Leistungsprogramm der Kreditinstitute

Bruhn, Stephan

doi:10.1007/978-3-8349-8518-7_11

Cited by 2 publications

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…But in contrast to our approach, which adjusts the collateral value depending on the associated attributes of the collateral, banking practice commonly applies a flat haircut to the collateral value. For collateral in real estate in Germany this haircut ranges between 10 and 40 % (e.g., Grunert and Weber 2009;Bruhn 2009;Pfnür 2011). Unlike this flat discount, our individual correction parameter can also take on values above 1 and, therefore, cause discounts and premiums.…”

Section: Adjusting the Market Valuesmentioning

confidence: 99%

“…Fourthly, banks commonly apply a flat haircut to the collateral value. For collateral in real estate, this haircut ranges between 10 and 40 % in Germany (see, e.g., Grunert and Weber 2009;Bruhn 2009;Pfnür 2011). Hence, we apply flat haircuts to the collateral values to adjust the collateralization ratios and explain the recovery rate again.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The recovery rate for retail and commercial customers in Germany: a look at collateral and its adjusted market values

Ingermann

Hesse

Bélorgey

et al. 2016

Bus Res

View full text Add to dashboard Cite

Based on a unique data set of 909 defaulted retail and commercial (selfemployed and SMEs) credit customers in Germany, whose original loans were made by 123 different banks, our article confirms a significant positive influence of collateral, and of amicable agreements between the debtor and the bank (redemption), on the recovery rate [1 -loss given default (LGD)]. In a further analysis of collateral, systematic biases between the realized market price and the expected market values of real estate are revealed, even though the appraisal reports should have already considered all factors influencing the value. Using valuations that were adjusted for these recognized biases, we can increase the explanatory power of the underlying models. Moreover, we compare these models to models that apply, as is common practice in the banking industry, flat haircuts to collateral values and show the superior performance of our proposed approach.

show abstract

Section: Adjusting the Market Valuesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The recovery rate for retail and commercial customers in Germany: a look at collateral and its adjusted market values

Ingermann

Hesse

Bélorgey

et al. 2016

Bus Res

View full text Add to dashboard Cite

show abstract

“…Moreover, the appearance of MPI in studies seems solely as a side note which must be addressed in the surrounding of a mortgage consultation or is just a small part of the financing solution (e.g. Bruhn, 2009;Noosten, 2015). The scarce literature on MPI is mainly conducted in the UK and USA and is influenced and guided to some extent by the ongoing policy debate surrounding this financial service.…”

Section: Literature Examining Mortgage Payment Protection Insurancementioning

confidence: 99%

Fear appeals and mortgage protection insurance – a quantitative study

Röhl¹

View full text Add to dashboard Cite

Managers in charge of sales process designs are constantly in the need to optimise their communication strategy to improve advisory quality and take-up rates. This is especially true for mortgage protection insurance (MPI), where buying insurance means buying an immaterial product that creates a perception of security which protects one of the most important assets in life – one’s home. It is key for a successful advisory to find communication approaches that overcome the psychological barriers of customers. One possible approach is the use of fear appeals, which confront the customer with negative consequences. Despite their widespread use in the public field, and continuous academic interest since the 1950s, the effectiveness of fear appeals remains equivocal. A detailed chronological examination of fear appeal research is presented suggesting that the field of insurance distribution was neglected from research. The effect of specific individual differences (optimism, pessimism, risk-taking) on cognitions, emotions, and behaviour outcomes are identified as gaps in the literature. The primary aim of this thesis was to determine the effectiveness of fear appeals in the context of MPI on behaviour outcomes and on willingness-to-pay to enhance the advisory quality of mortgage salespersons. To achieve this a research framework was developed that utilises the constructs of the Extended Parallel Process Model, conceptualises a fear appeal into three message characteristics (vivid image, message frame, message direction) and integrates individual differences. Using data from a randomised experiment (N = 1,014), the research framework was tested using ANOVAs, t-tests, regression analysis, and PROCESS calculations. The results delivered valuable insights. Firstly, vivid images created fear and uncomfortable feelings but did not influence cognitions or behaviour outcomes. Secondly, cognitive appraisal values indicated that the product information was well suited for business needs. Moreover, perceived susceptibility to a threat, as did optimism and risk-taking, showed a significant positive effect on willingness-to-pay. Lastly, a significantly positive effect was achieved on attitude towards MPI with the integration of the treatment. This project has demonstrated important factors for improving the sales process of MPI salespersons.

show abstract

Immobilienfinanzierung: das Beratungs- und Leistungsprogramm der Kreditinstitute

Cited by 2 publications

References 0 publications

The recovery rate for retail and commercial customers in Germany: a look at collateral and its adjusted market values

The recovery rate for retail and commercial customers in Germany: a look at collateral and its adjusted market values

Fear appeals and mortgage protection insurance – a quantitative study

Contact Info

Product

Resources

About