Series: Occasional Papers. 2010.
Author: María de los Llanos Matea Rosa and Miguel Ángel López
Financial institutions, Banks
- Credit
- Financial stability
- Household finances
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Abstract
The 2008 crisis evidenced that real-estate appraisal for mortgage lending is key to financial
stability. This paper focuses on describing the Spanish mortgage-lending appraisal system and comparing it with those used in other advanced economies. A wide range of appraisal models is used. The model used depends, inter alia, on the relative importance of the real-estate sector in each country. For instance, there are countries in which the appraisal profession is unregulated and there are no rules on the use of a specific methodology, the model reports are not standardised, the appraisers are not certified and the sector is self-regulated. Others, by contrast, Spain included, have drawn up standards establishing the valuation methodology, the model appraisal report, and the requirements for incorporation and certification of appraisal companies. These countries also have a national supervisory authority.