Managing Risk In Mortgage Portfolios [Hardcover]

Alex O. Williams thoroughly examines the nature and sources of mortgage portfolio risk, the analysis of that risk, and the methods for identifying and guarding against it. Following a discussion of regulation and the mortgage market, Williams describes the portfolio diversification approach to controlling risk in mortgage portfolios. He then examines four systems for analyzing portfolio risk: the regression method of mortgage risk analysis, the linear probability model, cohort analysis of delinquency risk, and a discriminant functional classification model used to measure default risk. He also develops a procedure for constructing an index of loan quality. Finally, Williams presents an exhaustive treatment of the financial evaluation of commercial and industrial properties. Presented in a clear, readable format, amply illustrated with explanatory tables and figures, this is an invaluable tool for mortgage officers and portfolio managers. It will also provide much useful information for real estate executives and brokers.ALEX O. WILLIAMS is Robert W. Woodruff Professor of Business Administration at the Atlanta University.

Part I: The Environment: Regulation and the Mortgage Market
The Etiology of Risk in Mortgage Portfolios
Part II: Risk Reduction Through Portfolio Diversification
Controlling Risk in Mortgage Portfolios
Part III: Residential Mortgages: Single- and Multifamily
Mortgage Risk Analysis: The Regression Method
Linear Probability Model
Cohort Analysis of Delinquency Risk
Discriminant Function Analysis Classification
Risk Indexes
Evaluating Commercial and Industrial Properties