Design of a Hybrid Mortgage Lending System: To Decrease the Cost of Trust by considering the Integrative Model of Organizational Trust

Traditional financial companies play a central role in ensuring financial stability and reliability. However, these companies face institutional problems due to inefficiencies, lack of transparency and limited innovation. For this reason, the use of distributed ledger technology, or blockchain, has been explored as an alternative and its...

Forecasting Mortgage Prepayments in Changing Interest Rate Regimes: A Hybrid Economic-Engineering Model with EMPC

Banks such as Rabobank depend on multi-year mortgage prepayment forecasts in order to make provisions for the associated prepayment risks. The econometric models they use are fitted to historical data, and as a consequence their models are fitted to a decreasing interest rate regime. Given the current economic climate of increasing interest...

Estimating model uncertainty for conditional prepayment rate predictions using artificial neural networks with dropout

Clients with a mortgage loan may prepay a part of their loan before the contractual date. This is called prepayment. In the case of a prepayment, the bank who issued the loan earns less interest than ini- tially agreed. It is therefore essential to build accurate models for predicting prepayment behavior. In this thesis, machine learning models...

Mortgage Prepayment Rate Estimation with Machine Learning

The aim of this thesis is to forecast the evolution of the prepayment rate in a mortgage portfolio. In the Netherlands, people with a loan have the possibility to repay (part of) their outstanding loan before the due date. These prepayments make the length of the portfolio of loans stochastic, which creates problems in the refinancing policy of...

Pricing and Hedging of a Mortgage Portfolio

Forecasting the prepayments is essential for any financial institution providing mortgages, and it is a crucial step in the hedging of the risk resulting from these unexpected cash flows. The way in which the prepayment rate is predicted impacts on the hedging strategy. For example, if the prepayment model is deterministic only the average...

The implementation of Chatbots and Robo-advice in the mortgage market: Designing the new mortgage journey for first-time buyers

This Master’s thesis at the Delft University of Technology is executed in collaboration with Fintech company Yellowtail.<br/><br/>The assignment was to design a new mortgage application process. The current consumer journey proved to be outdated and a shocking mismatch with the new generation of firsttime buyers. Especially the high costs and...

Block and Mortar: A blockchain-inspired business model for mortgage funding market place

Valuation of mortgage offer options

Integrating Design Thinking in Lean Six Sigma: a service design case study for interest reduction on mortgages

This thesis searches for a way to integrate Design Thinking into Lean Six Sigma. This is done by doing a service design case study for mortgage interest rate reduction for a bank. The service design is done with several design thinking tools. The tools during the process are reflected upon and these reflecties serve as a guideline for the...

Continuous Risk Management of Customers, Application at the ING Arrears Department

Continuous Risk Management (CRM) is a practice in which there is a continuous assessment of the risks that exist or could arise. In addition, in CRM it is determined which risks have priority to be dealt with and strategies are considered that could be implemented to deal with the risks. This thesis demonstrates how CRM of (mortgage) customers...

Crisis op de Amerikaanse woningmarkt

Dit onderzoek wil een antwoord geven op een aantal vragen die zijn vastgesteld aan de hand van ingelezen literatuur en een eigen onderzoek in Amerika. Een goede afbakening van begrippen is bij een groot onderwerp als dit cruciaal. Onderstreepte woorden en afkortingen zijn te vinden in de begrippenlijst. Allereerst zullen er systemen en...