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The Globalization and Europeanization of Mortgage Markets

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  • MANUEL B. AALBERS

Abstract

Do globalization and Europeanization lead to the deterritorialization of European mortgage markets? Neither economic globalization nor EU policies have resulted in one European mortgage market. The various European mortgage markets are still quite different from one another in many respects. In most countries national lenders continue to dominate the market even though regulation itself has been internationalized to some extent. Deterritorialization has been slow for various reasons: tax, law, cultural and structural differences play a part, but the limited market share of mortgage intermediaries and the unequal treatment of foreign mortgage lenders in some countries also form a barrier. Path‐dependent trajectories are highly important, but can sometimes be bypassed by global processes or downplayed by the entry of foreign firms. The secondary mortgage market is increasingly becoming globalized, while most primary mortgage markets remain largely national. The financial crisis may temporarily slow down securitization, while simultaneously both decreasing and increasing the globalization of mortgage regulation, firms and markets. Résumé La mondialisation et l'européanisation conduisent‐elles à la déterritorialisation des marchés hypothécaires européens? Ni la mondialisation économique ni les politiques de l'UE n'ont produit un marché unique européen du crédit hypothécaire. Au sein de l'Europe, les marchés hypothécaires restent très différents à plusieurs titres. Dans la plupart des pays, les établissements de prêt nationaux dominent encore le marché, même si on a relativement internationalisé la réglementation. La déterritorialisation se fait lentement pour plusieurs raisons; fiscalité, législation, différences culturelles et structurelles pèsent, mais la part de marché restreinte qu'occupent les intermédiaires en prêts hypothécaires, ainsi que le traitement inégal réservé aux prêteurs étrangers dans certains pays, constituent également un obstacle. Les chemins de dépendance sont particulièrement importants, bien qu'ils puissent parfois être contournés par des processus mondialisés, ou être minimisés par l'accès de sociétés étrangères. En matière de crédit hypothécaire, le marché secondaire se mondialise de plus en plus, tandis que les marchés primaires demeurent en grande partie nationaux. La crise financière va peut‐être ralentir temporairement la titrisation, tout en atténuant et renforçant parallèlement la mondialisation de la réglementation, des sociétés et des marchés du crédit hypothécaire.

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  • Manuel B. Aalbers, 2009. "The Globalization and Europeanization of Mortgage Markets," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 389-410, June.
    • Handle: RePEc:bla:ijurrs:v:33:y:2009:i:2:p:389-410
    DOI: 10.1111/j.1468-2427.2009.00877.x
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    1. Manuel B. Aalbers, 2009. "The Sociology and Geography of Mortgage Markets: Reflections on the Financial Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 281-290, June.
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    7. Kevin Fox Gotham, 2009. "Creating Liquidity out of Spatial Fixity: The Secondary Circuit of Capital and the Subprime Mortgage Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 355-371, June.
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    2. Thomas Wainwright, 2009. "Laying the Foundations for a Crisis: Mapping the Historico‐Geographical Construction of Residential Mortgage Backed Securitization in the UK," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 372-388, June.
    3. Kevin Fox Gotham, 2016. "Re-anchoring capital in disaster-devastated spaces: Financialisation and the Gulf Opportunity (GO) Zone programme," Urban Studies, Urban Studies Journal Limited, vol. 53(7), pages 1362-1383, May.
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    5. Gary A. Dymski, 2009. "Afterword: Mortgage Markets and the Urban Problematic in the Global Transition," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 427-442, June.
    6. Kevin Fox Gotham, 2009. "Creating Liquidity out of Spatial Fixity: The Secondary Circuit of Capital and the Subprime Mortgage Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 355-371, June.
    7. Jorge Afonso & Paulo Conceição, 2024. "Europeanisation in the Field of Housing: Its Areas of Influence, Different Approaches, Mechanisms, and Missing Links," Social Sciences, MDPI, vol. 13(5), pages 1-15, May.
    8. Francesco Macheda, 2018. "The illusion of patient capital: evidence from pension investment policy in the Netherlands," Working Papers 0029, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    9. Michelle Norris & Nessa Winston, 2012. "GINI DP 42: Home-Ownership, Housing Regimes and Income Inequalities in Western Europe," GINI Discussion Papers 42, AIAS, Amsterdam Institute for Advanced Labour Studies.
    10. Lopez, Ramon E. & Pastén, Roberto & Gutiérrez Cubillos, Pablo, 2022. "Climate change in times of economic uncertainty: A perverse tragedy of the commons?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 209-225.
    11. Carlos Bueno-Suárez & Daniel Coq-Huelva, 2020. "Sustaining What Is Unsustainable: A Review of Urban Sprawl and Urban Socio-Environmental Policies in North America and Western Europe," Sustainability, MDPI, vol. 12(11), pages 1-36, May.
    12. Squires, Graham & White, Iain, 2019. "Resilience and housing markets: Who is it really for?," Land Use Policy, Elsevier, vol. 81(C), pages 167-174.
    13. Mikel Aramburu, 2015. "Rental as A Taste of Freedom: The Decline of Home Ownership amongst Working-class Youth in Spain during Times of Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 39(6), pages 1172-1190, November.
    14. William Kutz, 2016. "The Eurozone Crisis and Emerging-Market Expansion: Capital Switching and the Uneven Geographies of Spanish Urbanization," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(6), pages 1075-1093, November.
    15. Dariusz Wójcik, 2013. "The Dark Side of NY–LON: Financial Centres and the Global Financial Crisis," Urban Studies, Urban Studies Journal Limited, vol. 50(13), pages 2736-2752, October.
    16. Manuel B. Aalbers, 2009. "The Sociology and Geography of Mortgage Markets: Reflections on the Financial Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 281-290, June.
    17. Buchanan, Bonnie G., 2017. "The way we live now: Financialization and securitization," Research in International Business and Finance, Elsevier, vol. 39(PB), pages 663-677.
    18. Elvin Wyly & Markus Moos & Daniel Hammel & Emanuel Kabahizi, 2009. "Cartographies of Race and Class: Mapping the Class‐Monopoly Rents of American Subprime Mortgage Capital," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 332-354, June.
    19. Saskia Sassen, 2009. "When Local Housing Becomes an Electronic Instrument: The Global Circulation of Mortgages — A Research Note," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 411-426, June.

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