MEASURING RISK IN MORTGAGE FINANCING
Provision of long term mortgage loan also known as mortgage financing is associated with several risks such as Credit Risk, Interest rate, Operational risk, solvency risk, Legal/foreclosure risk among others. In other to mitigate risk in mortgage financing and measuring the impacts of those risk as listed, we have designed our training curriculum to optimize skill and performance of personnel performing risk management to be able to carry out their functions excellently.
One of the benefits expected to be realized from this training is to change the attitude of Staff, Management and Board towards risk management. Expectedly, there are key components that measuring risk in mortgage financing must be addressed:
Need to develop a comprehensive focus on industry-wide data and techniques for measuring risk
· Need to Implement Risk Adjusted Return measures for firm objective setting
· Need to develop an individual performance target
· Need for greater introspection on the part of management teams to validate external
information against a stated risk vision.