Prediction of Mortgage Market Development through Factors Obtained in a Scoring Model
Ing. David MareŇ°

Abstract
We currently focus on the stability of our banks in Europe and try to find out whether our European banks may be endangered the same way American banks were and whether the situation on the mortgage market may repeat itself in our country with such vehemence that was experienced in America. European banks do not seem to have any problems with toxic assets of Collateralized Debt Obligation, as was the case with Investment banks in the USA (the European financial market is not as developed as the American), but they rather search for an answer to the question whether the first impulse, i.e. mortgage defaults in the USA, might have been caused by wrongly applied methodology of scoring and whether the methodology of scoring (or a part of it) can be used for the prediction of the mortgage market development in order to prevent material defaults and to adjust the scoring model to respond to changing market conditions.

Full Text: PDF     DOI: 10.15640/jfbm.v3n1a12