Weakness of Real Estate Collateral Valuation Policy in Changed Financial World.

The change in the real estate market has been rapid, partly due o mortgages, partly due to banking regulation and tightening construction control because of climate change. The importance of the appraisal expertise and correct collateral value related to mortgage lending has been further emphasized as a means of risk management. However, mortgage valuation, collateral valuation and calculation models related to mortgages have not evolved with regulation, because of which new market risks are emerging in the real estate market, the combined effect of which may lead to strong market reactions.