Non-interest effects reveal the significance of the borrower's characteristics, property age, and regional mobility rates on mortgage termination. Mortgage Portfolio Composition Ling T. He, F.C. Neil Myer, and James R. Webb Previous studies have found that bank stock returns are very sensitive to changes in real estate returns in general. But how the composition and quality of bank real estate portfolios affect the sensitivity of bank stocks to real estate returns has not been rigorously examined. The purpose of this study is to empirically examine this important question. The results indicate that commercial mortgages contribute the most to the sensitivity of bank stock returns.
Farmland loans have a negative impact on bank real estate return sensitivity.
Thus, farmland loans could play a diversification role in terms of reducing the sensitivity of banks to real estate returns, if used appropriately. Assessed values of owner-occupied housing have been analyzed in this study to determine whether there is systematic error in the property valuation process by assessors. Sources of systematic error are identified for three countries in the Puget Sound area of Washington State. A method is developed to correct assessed values for systematic error to provide better estimates of market values. The results of the study may be useful for using assessed values as predictors of market values.