IDEAS home Printed from https://ideas.repec.org/a/etr/series/v4y2013i8p187-194.html
   My bibliography  Save this article

Financial regulations and standards in the low income property market of South Africa

Author

Listed:
  • Vuyisani Moss

    (Vuyisani Moss is a Research Analyst at the National Housing Finance Corporation (NHFC) in Johannesburg, South Africa and has recently completed his PhD at Wits University in Town and Regional Planning)

  • Hasan Dincer

    (Beykent University in Istanbul, Turkey)

  • Ümit Hacioglu

    (Beykent University in Istanbul, Turkey)

Abstract

In examining the propensity to default on mortgage loans amongst low income households of Protea Glen, in Johannesburg, South Africa, part of the objectives was to examine financial regulatory instruments and measures aimed at ensuring fairness in the mortgage finance environment. The rationale was prompted by the assumption that regulatory instruments and protection measures were feeble and lack significant oversight as non-disclosures were prevalent with regard to mortgage contracts. Moreover, that misinformed mortgage borrowers were enticed to take up loans that were unaffordable to their financial situations. The adopted research approach by the author in analysing findings through an SPSS as an appropriate statistical technique was to employ a regression model to measure the association between independent variables and dependent variables. The regression model was to predict the outcome variable propensity to or non-payment behaviour, using regulatory information and borrower’s understanding of existence and effectiveness of these regulatory initiatives with regards to their rights with the lender. In addition to quantitative analysis, qualitative experimentation was employed in testing the relationship and interesting scientific findings emerged.

Suggested Citation

  • Vuyisani Moss & Hasan Dincer & Ümit Hacioglu, 2013. "Financial regulations and standards in the low income property market of South Africa," E3 Journal of Business Management and Economics., E3 Journals, vol. 4(8), pages 187-194.
  • Handle: RePEc:etr:series:v:4:y:2013:i:8:p:187-194
    as

    Download full text from publisher

    File URL: http://e3journals.org/cms/articles/1376065428_Vuyisani%20et%20al.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yuliya Demyanyk & Otto Van Hemert, 2011. "Understanding the Subprime Mortgage Crisis," The Review of Financial Studies, Society for Financial Studies, vol. 24(6), pages 1848-1880.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leonard Nakamura, 2014. "Durable Financial Regulation: Monitoring Financial Instruments as a Counterpart to Regulating Financial Institutions," NBER Chapters, in: Measuring Wealth and Financial Intermediation and Their Links to the Real Economy, pages 67-88, National Bureau of Economic Research, Inc.
    2. Stefano Colonnello & Mariela Dal Borgo, 2024. "Raising Household Leverage: Evidence from Co-Financed Mortgages," Working Papers 2024: 01, Department of Economics, University of Venice "Ca' Foscari".
    3. Delis, Manthos D. & Hasan, Iftekhar & Tsionas, Efthymios G., 2015. "Firms' risk endogenous to strategic management choices," Bank of Finland Research Discussion Papers 16/2015, Bank of Finland.
    4. Mardi Dungey & Gerald Dwyer & Thomas Flavin, 2013. "Systematic and Liquidity Risk in Subprime-Mortgage Backed Securities," Open Economies Review, Springer, vol. 24(1), pages 5-32, February.
    5. Pagès, Henri, 2013. "Bank monitoring incentives and optimal ABS," Journal of Financial Intermediation, Elsevier, vol. 22(1), pages 30-54.
    6. Martino, Ricci & Patrizio, Tirelli, 2017. "Subprime Mortgages and Banking in a DSGE Model," Working Papers 366, University of Milano-Bicocca, Department of Economics, revised 22 Jun 2017.
    7. Shuang Zhu & R. Pace & Walter Morales, 2014. "Using Housing Futures in Mortgage Research," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 1-15, January.
    8. Kuang-Liang Chang & Nan-Kuang Chen & Charles Ka Yui Leung, 2013. "In the Shadow of the U nited S tates: The International Transmission Effect of Asset Returns," Pacific Economic Review, Wiley Blackwell, vol. 18(1), pages 1-40, February.
    9. Vonnák, Dzsamila & Ongena, Steven & Schindele, Ibolya, 2017. "Monetáris politika és a bankok hitelkínálata. Vállalati adatokon alapuló elemzés [Monetary policy and bank-loan supply: evidence from firm-level analysis]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 217-237.
    10. Olivier Coibion & Yuriy Gorodnichenko & Marianna Kudlyak & John Mondragon, 2014. "Does Greater Inequality Lead to More Household Borrowing? New Evidence from Household Data," NBER Working Papers 19850, National Bureau of Economic Research, Inc.
    11. Mocetti, Sauro & Viviano, Eliana, 2017. "Looking behind mortgage delinquencies," Journal of Banking & Finance, Elsevier, vol. 75(C), pages 53-63.
    12. Lewis, Brittany Almquist, 2023. "Creditor rights, collateral reuse, and credit supply," Journal of Financial Economics, Elsevier, vol. 149(3), pages 451-472.
    13. Ronald D. Watson, 2008. "Subprime Mortgages, Market Impact, and Safety Nets," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 11(03), pages 465-492.
    14. David Vidal-Tomás & Simone Alfarano, 2020. "An agent-based early warning indicator for financial market instability," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(1), pages 49-87, January.
    15. Gannon, Gerard L. & Thuraisamy, Kannan S., 2017. "Sovereign risk and the impact of crisis: Evidence from Latin AmericaAuthor-Name: Batten, Jonathan A," Journal of Banking & Finance, Elsevier, vol. 77(C), pages 328-350.
    16. Adelino, Manuel & Scott Frame, W. & Gerardi, Kristopher, 2017. "The effect of large investors on asset quality: Evidence from subprime mortgage securities," Journal of Monetary Economics, Elsevier, vol. 87(C), pages 34-51.
    17. Daniel García, 2020. "Employment in the Great Recession: How Important Were Household Credit Supply Shocks?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(1), pages 165-203, February.
    18. Dungey, Mardi & Milunovich, George & Thorp, Susan & Yang, Minxian, 2015. "Endogenous crisis dating and contagion using smooth transition structural GARCH," Journal of Banking & Finance, Elsevier, vol. 58(C), pages 71-79.
    19. Fligstein, Neil & Goldstein, Adam, 2011. "Catalyst of Disaster: Subprime Mortgage Securitization and the Roots of the Great Recession," Institute for Research on Labor and Employment, Working Paper Series qt83x2h03n, Institute of Industrial Relations, UC Berkeley.
    20. Nadauld, Taylor D. & Weisbach, Michael S., 2012. "Did securitization affect the cost of corporate debt?," Journal of Financial Economics, Elsevier, vol. 105(2), pages 332-352.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:etr:series:v:4:y:2013:i:8:p:187-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrew Godwin (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.