Template-Type: ReDIF-Article 1.0

Author-Name: Gyula László Nagy
Author-Workplace-Name: Takarék Jelzálogbank
Author-Email: Nagy.GyulaLaszlo@takarek.hu

Author-Name: Zsombor Incze
Author-Workplace-Name: Takarék Jelzálogbank
Author-Email: Incze.Zsombor@takarek.hu

Author-Name: Erik Landgraf
Author-Workplace-Name: Szabó Kelemen & Andersen Attorneys
Author-Email: erik.landgraf@hu.AndersenLegal.com

Title: Mortgage Bank Refinancing – Proposals for Implementation of the European Covered Bond Directive in Hungary

Abstract: In this study, we summarise the operational models of mortgage banks and the new
EU mortgage bond regulations. We analyse the most important challenges facing
refinancing mortgage banks in the current framework. These are basically grouped
into three subjects: (1) for historical reasons, the characteristics of refinancing
loans do not support more efficient portfolio refinancing; (2) the refinancing loan
guarantee scheme does not ensure fulfilment of the conditions laid down in other
legislation in case of statutory portfolio assignment; (3) overcollateralisation in the
current purely refinancing model cannot be achieved from ordinary collateral. On
this basis, we propose the development of an alternative regulation for “refinancing
mortgage banks”, while fully maintaining the current operation; with this alternative
regulation, a revised collateral system would help to solve the problems and develop
a more efficient mortgage loan structure.

Classification-JEL: G28, G21, K22, K23
Keywords: covered bonds, mortgage banks, mortgage bonds, mortgage loans, refinancing
Pages: 102-129
Volume: 19
Issue: 3
Year: 2020
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-19-3-st4-nagy-incze-landgraf.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:19:y:2020:i:3:p:102-129