Existing Problems And Countermeasure Study Of Real Estate Mortgage Evaluation

As for financial institutions such as banks, real estate mortgage loan has always been thepreferred patterns of lending because of its low risks and steady profits; however, with thedifficulty of turning assets into cash and the increasing cases of banks’rights to mortgage notbeing fully realized in the process of dealing with mortgages, and from the lesson of USsubprime mortgage crisis, real estate mortgage appraisal, whichis compactly connected with the real estate markets and the financial institutions, has longbeen a key point of the industry. Just like Xi Jinping, when he visited Germany, said: Chinaneed “German quality”, the real estate mortgage appraisal also need improve its qualitybecause the high-quality real estate mortgage appraisal plays an important role inguaranteeing the safety of commercial bank loans, ensuring borrowers’legitimate interests andpromoting the healthy development of real estate industry. But the real estate mortgageappraisal market in China starts a little bit late, and there are still some problems both intheory and in practice. Therefore, it is necessary to study the problems involved in real estatemortgage appraisal, which also is the purpose that the writer chooses this topic.Based on the discussion of the current situation of real estate mortgage appraisal in China,this paper mainly analyzes the existing issues in real estate mortgage appraisal. Two possiblesituations can arise when we select comparable cases in the process of mortgage appraisal:one is that there are lots of transaction examples, and it is difficult to select a comparable casewhich is the most similar to appraisal object from the numerous transaction examples; theother is that in some areas where the real estate transaction is inactive or when some specialprojects are appraised, the number of comparable cases is not enough or the comparable casesare not practical. For the first problem, the concept of close degree and the principle ofchoosing the nearest in fuzzy mathematics can be used to select reasonable comparable caseseffectively. For the second problem, it can be solved efficiently by establishing appraisalinstitutions’own database of real estate appraisal, especially by the cooperation among theappraisal institutions of different places. When carrying out the cashability analysis ofmortgaged real estate, we lack the support of related theory and quantitative analysis, and thedetermination of fast realization rate mainly depends on valuers’ subjective judgments. In thispaper, through fuzzy evaluation model, the cashability of mortgaged real estate can bedetermined quantitatively and the fast realization rate can be determined effectively. As thereare some cases that the hypothecary value of real estate is misunderstood in the practice ofmortgage appraisal, the valuation results may not play a role for banks in preventing mortgageloan risks. Through the explanation of relevant laws and regulations, this paper discusses thetypes of priority rights to be repaid that may have an influence on mortgage rights andputs forward some suggestions on how to determine the hypothecary value reasonably. Thispaper also discusses the lack of compliance in the appraisal, and put forward the relativeproposals.