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Berstain David (2009) examined in his study taken from 2001 to 2008 that in this period there is increase use of home loans as compared to private mortgage insurance(PMI).he have divided his study into four sections. Section 1 describes why people aregoing more for home loans than PMI. the main reason for this that now home loans market provide Piggybank loans for those people who dont have 20% of down payment. Section2 tells the factors responsible for the growth of home loans and the risks on shifting towardhome equity market without any PMI coverage. PMI can protect lenders from most lossesu p t o 8 0 % o f L T V a n d t h e a b s e n c e o f P M I w i l l r e s u l t i n c o n s i d e r a b l e l o s s e s i n a n environment. Section 3 tells the measures in changes of type of loans. For this he have taken the data from the 2001 and 2007 AHS a joint project by HUD and Census The resultsof this analysis presented in Table One reveal a sharp increase in the Prevalence of owner-occupied properties with multiple mortgages among properties with Newly originated firstm o r t g a g e s . S e c t i o n 4 d e s c r i b e t h e F i n a n c i a l s t a t u s o f s i n g l e lien and multiple-lienhouseholds and for this he have taken the survey of c o n s u m e r f i n a n c e a n d s h o w t h a t financial position is more weaker in multiple loans than the single loans. Vandell, Kerry D (2008) analysis the sharp rise and than suddenly drop down home pricesf r o m t h e p e r i o d 1 9 9 8 - 2 0 0 8 . changes in prices are for the reasons as such economicfundamentals , the p r o b l e m w a s n o t s u b p r i m e l e n d i n g p e r s e , b u t t h e F e d s d r a m a t i c reductions, then increases in interest rates during the early- mid-2000 , the housing boomwas concentrated in those markets with significant supply-side restrictions, which tend to be more price-volatile; he problem was not in the excess supply of credit in aggregate, or the increase in sub prime per se, but rather in the increased or reduced presence of certainother mortgage products. La courr, Micheal (2007 ) analysis in his study the factors affected the increase in the levelof Annual percentages rates (APR) spread reporting during 2005 over 2004. the three mainf a c t o r s a r e c h a n g e s i n l e n d e r b u s i n e s s p r a c t i c e s ; ( 2 ) c h a n g e s i n t h e r i s k p r o f i l e o f borrowers; and (3) changes in the yield curve environment. The result show that after controlling for the mix of loan types, credit risk factors, and the yield curve, there was nostatistically significant increase in reportable volume for loans originated directly bylenders during 2005, though indirect, wholesale originations did significantly increase.Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006results will continue to show an increase in the percentage of loans that are higher pricedwhen final numbers are released in September 2007. La cour Micheal (2006) examined the home purchase mortgage product preferences of LMI households. Objectives of his study to analysis the factors that determined factors their choice of mortgage product , is different income groups have some specified need tomet particular product. The role pricing and product substitution play in this segment of themarket and do results vary when loans are originated through mortgage brokers? For thisthey have use the regression analysis and the results are high interest risk reduce loan value. Self employed borrower chooses reduce documented loans than salaried workers.useof this product type seems to be more prevalent among borrowers with substantial fundsfor down payment and better credit scores. In case of pricing Multi families

requires price premium and larger loans carry lower rate. And the role of time, particularly, the timer e q u i r e d f o r t h e l o a n t o p r o c e e d f r o m a p p l i c a t i o n t o c l o s i n g i t i s f i n d that

lending taking th e longest time an d Nonprime loan s the shortest tim e.Multi family pr operties take longer time in

closing. And during peak season take longer time to close.And for last objective it is find that broker

originated loans close faster.The effect of mortgage brokers on pricing and other market outcomes

is fertile ground for additionalresearch . Dr. Rangarajan C. (2001) said that the financial system

of India built a vast network of financial institutions and markets over times and the sector is dominated by banking

sector which accounts for about two-third of the assets of organized financial sector. Haavio, Kauppi (2000)

stated that countries where a large proportion of the populationlives in owner occupied housing are experiencing higher

unemployment rates. Thancountries where the majority of people live in private rental housing, which might suggestthat rental

housing enhances labour mobility. In this paper, they develop a simple inter temporal two region model that allow us to compare owner occupied housing

markets torental markets and to analyze how these alternative arrangements allocate people in spaceand time. announced that it will offer loans

for Rs. 2-10 lakh at 12.5 percent the lowest rateoffered by any housing finance provider, big brother SBI has taken the rate war in thehome loans category to

new heights. This is because, apart from the low rate, the intereston these loans is calculated on principal, which is reduced every month unlike

other housing finance companies which calculate interest on annually reducing basis. Narasimham Co mmittee (1991)

points out that although the banking system in our country has made rapid progr ess during the la st two decades, t here is decline in

productivity and efficiency and erosion of pr ofitability. The co mmittee strongly makeindications of liberlising, der egulating econo my to make India

n baking system morecompetitive and efficient. Ojha (1987) in his paper "modern international caparison of productivity

andProfitability of pubic sector banks of India" making Comparison on the basis of per employee indicators and taking examples

of state bank group and Punjab National bank noted that I ndian banks are the lowest in all accounts. Howev er such internationa

lcomparison will not be fair for numbers of reasons. Godse (1983) in his essay, loo king a fresh at b anking productiv ity observe that

productivity asp ect is only at the Conceptual ization stage in b anking industry. Hesuggested improvement in productivity and procedures,

costing of operations and capitalexpenditure etc. Fanning (1982 ), while examinin g bank productivi ty of British bank s observed thatalt

hough the productivity of the UK clearing banks is improving, they are still heavily over manned as compared with

similar banks else where. Kulkarni (1979) in his study Development responsibility and profitability of banksstated that

while considering banks costs and profits, social benefits arising out of it cannot be ignored. He suggested that

while meeting social responsibility banks should try to makedevelopment al business as

successful as possible. Varde and Singh (1979) in a study "profitability of commercial banks" over 15

years gaveconsideration to two types of factors that effects interest rates levels i.e. internal factors(including operational and

managerial efficiency of individual basis). Banking Commission (1972 ) reviewed bank operating methods and procedures and

maderecommenda tions for improving and modernizing these, particularly relating to customersservices , credit procedure and internal

control systems. It observed that present methods of working out branch profitability are not appropriate and an integrated costing and

financialreporting system is needed. Department of Banking operat ions and development, RBI : Bombay observed that

therapid expansion of banks activities since 1970 called for a phase of consolidations toimprove the quality of banks operational

efficiency, productivity and customer services.


:- This is the stage where the Application Form first reaches theconcerned Service Centre Here all the documents in the application are

reviewed by theexperienced staff present at the service centre The HDFC Ltd employee wh o reviews thefile checks to see whether all

documents are present and in their proper place .He checks if the documents are duly filled,not fake,attested by authority in question and

present inorder.In case any document is missing the applicant is contacted electronically or by mail.The applicant is

contacted by telephone and requested for the document until he denies it being with him. This exercise is called FOLLOW UP. the credit

appraisal of the loanapplication starts at this stage. The service centre employees compute the gross salary, IIR,FOIR, Loan Eligibility ratio etc.The

credit worthiness of the applicant is calculated here.It is also at this stage that the QUICK DATA ENTRY of the loan application is doneto create a

serial no. of the application. after that another page appears and more data isentered .It is now that a special and unique LOAN A/C NO. is created under

which all theloan processes will be carried out. The number that has been generated is communicated tothe applicant b y means of a lett er and/or electro

nic communicati on the system of electronically recording the data helps to create ready reference, a proof ,helps in quick andeasy processing of the

data. It also helps to very easily and quickly share data with other employees of HDFC.The next and important processing perfor

med at the service centre is that of fillingup a docu ment known as t he INTERVIEW S HEET. for process ing individual

loans(salaried cases) .It contains various simple entries like Name of borrower 2. Name of co-borrower 3. Income details:-

Family background and permanent address etc.It also contains various important entries like.R u k m i n i Devi Insti tute of Adv

anced Studi es63


Recommendation Over(ROVR)Dou bleCheckingOver( DCOVR)Fixedch argesDisbursemen tof loan