How to Advertise Mortgage Bankers
According to Section 1, the business operations of the mortgage banks are primarily aimed at HypBankG
? To lend domestic properties and to issue bonds (Pfandbriefe) on the basis of the mortgages acquired.
? To grant loans to domestic corporations and institutions under public law or against full guarantee by such corporation or institution (municipal loan) and to issue bonds (municipal bonds, mortgage bonds) on the basis of the receivables acquired.
? To grant loans to a member state of the European Community or against assumption of the full guarantee by such a state in accordance with § 5 (1) HypBankG and the acquired claims to cover municipal bonds in compliance with § 5 Para. 1 HypbankG.
? In addition, according to § 5 Par. 2? 7HypBankG allows mortgage banks to carry out their business activities on a very limited circle of additional active and passive business.
The mixed mortgage banks (Bayerische Hypotheken- und Wechselbank, Bayerische Vereinsbank and Norddeutsche Hypothekenbank) are exempt from these provisions, as they existed before the Mortgage Bank Act came into force. These banks are allowed to conduct all normal banking business of a universal bank and are therefore assigned to them.
Pfandbrief Bank ...
Type of specialized mortgage bond banks. As a special bank under private law credit institute whose main business operations are aimed at 1.Lending domestic properties and issuing bonds (Pfandbriefe of the type Mortgage Pfandbriefe) on the basis of the mortgages acquired, 2. Loans to domestic corporations and institutions under public law or against assumption of the guarantee by such To grant a corporation or institution (municipal loan) and to issue bonds (Pfandbriefe of the category Public Pfandbriefe) on the basis of the claims acquired. Legal basis: Pfandbrief Act.
Real estate credit institute whose business is geared towards lending property. This is done by issuing loans secured by mortgages, for the financing of which so-called mortgage Pfandbriefe are brought into circulation (Pfandbrief). For mortgage banks, the Mortgage Bank Act (in the version dated December 19, 1990; Federal Law Gazette I, 2898) contains provisions on organization, legal form and business operations.
are credit institutions that grant mortgage loans (loans that are given out against a mortgage as security) and loans to municipalities. The funds for this lending are raised by these banks by issuing Pfandbriefe and municipal bonds.
Mortgage banks have two main lines of business. On the one hand, they issue mortgage loans; on the other hand, their business is state credit. They obtain the financial resources they need to grant loans on the capital market. A mortgage bank procures capital that is to be available in the long term by issuing Pfandbriefe.
A Pfandbrief system came into being in Germany in 1769 on the basis of an order from Frederick II. After the Seven Years' War (1756-1763), the goods of the Prussian nobility fell into disrepair, and the Junkers desperately needed money to rebuild them. For these economic considerations, King Frederick the Great introduced a Pfandbrief system with which the nobles were credited. In 1770 the aristocratic landowners in Prussian provinces were forcibly amalgamated on a public law basis in the so-called landscapes. These landscapes issued bonds that they used to refinance the loans they had extended to their members. With the bond, the owner of the paper acquired a direct lien on one of the goods that had been pledged by its landowner for the purpose of borrowing. Similar bonds are called mortgage letters today. The Pfandbrief system developed by Friedrich II soon found widespread use across Europe.
The first German mortgage bank was founded on December 8, 1862 in Franl fürt am Main (Frankfurter Hypothekenbank). Numerous, far-reaching mortgage banks emerged, and at the beginning of the 20th century there were around forty of these private law specialist banks in the German Reich. This development led to the legislature creating the legal framework for the activities of the mortgage banks in 1900 with the enactment of the Hypothekenbankgesetz (HBG), which is still valid today.
The purpose of mortgage loans granted by a mortgage bank is to finance the purchase or new construction of condominiums, single and multi-family houses, apartment buildings and commercial buildings. But also the modernization and renovation or the conversion of a] property are often financed through mortgage loans.
A land charge, i.e. a lien, which is entered in the land register, acts as security for such loans. The land charge entitles a mortgage bank to dispose of the pledged property if there are significant arrears or other difficulties in repaying the loan that cannot be resolved in any other way.
In the German banking landscape, which is determined by universal banks, the mortgage banks are the most important specialist banks. Twenty-two of the German mortgage banks operate exclusively in the two above-mentioned business areas, and two other mortgage banks are also allowed to perform business areas of a universal bank due to an exemption from the HGB. Most German institutes can look back on over a hundred years of company history.
The mortgage banks are important providers of capital for residential and commercial loans as well as the financing of government tasks. Your classic refinancing instrument is the Pfandbrief. Issues by mortgage banks account for almost two thirds of the total German Pfandbrief volume, at over EUR 600 billion. The mortgage banks are also increasingly active abroad.
When it comes to raising funds, the mortgage banks are capital market institutions, which means that they refinance themselves almost exclusively by issuing bonds on the capital market. The mortgage banks are also subject to the supervision of the Federal Supervisory Office for the credit system.
In their lending business, the mortgage banks are limited to land and state loans (Section 1 of the Mortgage Banks Act). In the lending business, they are based on the property lent and not on the borrower. Since they are not sufficient for personal loans, but so-called property loans, they are also referred to as mortgage banks. Your real estate financing differs from other credit institutions in that you secure the real estate lien on a property through your loans alone.
The second business area of the mortgage banks is, as already mentioned, the state loan, i.e. the granting of loans to public debtors. Government loans are granted to both domestic and foreign public borrowers. The awarding of contracts to foreign state institutions is a growth market for the mortgage banks. In the case of a state guarantee or other state guarantee, however, borrowers under private law can also benefit from a mortgage bank loan.
Local authorities such as the federal government, the federal states, the municipalities and also municipal associations, social insurance institutions and professional associations (e.g. Chamber of Crafts, Chamber of Industry and Commerce), public-law special purpose associations, religious communities that are recognized as public-law corporations can receive state loans, public credit institutions and insurance companies as well as public broadcasters. Companies under private law owned by public corporations are not eligible for public credit. The federal government, the federal states and the public-law credit institutions are the most important and largest debtors in terms of credit volume in the state loans of the mortgage banks.
There are two types of government loans as given by the mortgage lenders.
In the case of the original state loan, the bank carries out an individual credit check on the borrowing body and concludes a loan agreement with it without the need for real collateral; the municipality does not have to pledge land for the loan. For the loan, however, the German state financial equalization guarantees. In the event of payment difficulties in the municipalities, the federal states are responsible;
Debt securities are at the center of the second form of government credit, i.e. indirect government credit. The public borrower concludes the loan agreement with a company in the financial services industry, the so-called intermediary. This intermediary sells parts of the loan in securitized form (bonds) on the capital market, including to mortgage banks. The bank can then continue to work with these promissory notes because they can be resold at any time. The main purpose of refinancing the government loans is the issuance of public Pfandbriefe by the mortgage banks.
Real estate credit institutions
Banking institutions, in the legal form of a stock corporation or KGaA, with a specialized business group based on the Mortgage Bank Act. Grant long-term real estate loans (refinanced through mortgage Pfandbriefe) and loans to local authorities and similar persons under public law (refinanced through municipal bonds). Secure your claims with real property liens or equivalent collateral. Are also subject to the supervision of the Federal Banking Supervisory Office. Mortgage lenders are also known as mortgage lenders.
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