Research On Evaluating The Mortgage Value Of Construction In Progress Based On The Perspective Of Bank

With the continuous development of the real estate industry, real estate companies have great demand for capital in the construction of real estate projects. Mortgage with the construction in progress has become an important way to get funds for the real estate companies. However, in recent years, a considerable part of the effective mortgage became non-performing loans. Through analysis, we could find that the appraisers overvaluing mortgaged assets and inadequate risk prevention are important factors. The quality problems of mortgaged loans evaluation cause widespread concern in society, and the security of mortgage loan has become an urgent problem.To solve these problems, this paper researches on the theory and methods of valuation of mortgaged assets of construction in progress and pricing of the mortgaged loans. Specifically, this paper can be divided into six chapters. The first chapter is an introduction, analyzing the research background, significance, researching status of valuation of mortgaged assets of construction in progress. The second chapter is the overview of the valuation of mortgaged assets of construction in progress. This chapter systematically summarizes the theoretical basis of the valuation of mortgaged assets of construction in progress, analyzes the valuation of mortgaged assets of construction in progress on the perspective of bank. The third chapter is about the evaluation method. Firstly, the chapter introduces these valuation methods and analyzes their applicability and finds that the costing method and assuming development method are suitable for valuing the mortgaged assets of construction in progress. Then, the chapter describes the valuation procedures of these two methods in detail. The Chapter IV is about the model design. The chapter puts forward that using collateral risk factor is helpful to solve the issue of mortgaged loan pricing. Then the chapter carries out the discussion about the theoretical framework of the evaluation system, methodology, evaluation index system, model design. The chapter V is a case study. In this chapter, the valuation method and assessment model mentioned before are applied to the actual cases to check the effectiveness. The chapter VI is the conclusion and outlook.Through researching, the paper obtains the following conclusions and results:(1) Combing the theoretical foundation of valuation of mortgaged assets of construction in progress. At present, theorists and practitioners have different views about the type of collateral value, the valuation methods and pricing of the mortgaged loans. This paper defines these aspects after researching.(2) Clarifying the valuation methods of mortgaged assets of construction in progress and their evaluating technical route. The current valuation for mortgaged assets of construction in progress does not have a unified standard. There is a big difference in the applying of valuation methods and parameter selection due to different appraisers, which may affect the accuracy and reliability of the valuation results.(3) Establishing the evaluation system of the mortgage risk factors. The paper analyzes the mortgage risk from risk of project of construction in progress, market risk, risk of policy planning and operational risk. Then the paper establishes the evaluation system using expert scoring method, AHP, and other mathematical tools.This paper carries out study on the issues of mortgaged assets of construction in progress in order to provide an effective system of mortgaged assets valuation for bank, reduce the risk of bank mortgage and guarantee financial security.