ANNEX III

INFORMATION IN THE MORTGAGE CREDIT PORTFOLIOS OF POLISH BANKS

1.0

INTRODUCTION

An analysis of bank portfolios with regard to mortgage lending activity would be an

extremely useful first step in understanding the evolution of mortgage credit in Poland.  As

discussed in the text, bank portfolios cannot be used to obtain (unbiased) estimates of the

demand for mortgage credit, since the files contain only those who have already applied

and who have been accepted for a loan.  (In other words, that portion of Polish households

who do not need to apply, or do not wish to apply for a loan or who were refused, which

is an interesting analysis in itself are not included.)  Nevertheless, descriptive analysis

of current mortgage portfolios would provide very interesting insights regarding the total

volume of mortgage lending, total number of loans, the average size of the loans and the

distribution by size, the type of mortgage product, the LTV, loan duration, other loan terms,

the general characteristics of the borrowers, the geographic distribution, and so forth.

No doubt individual banks in Poland analyze their own mortgage portfolio

information internally for use in marketing statistics, just as banks do elsewhere.  These

data and analyses are not, of course,  available to the public. However, the question may

be addressed as to whether banks would be willing to strip their files of confidential

information and provide them for analysis to the Polish Banks Association, for example,

and/or the Foundation for Mortgage Credit.  In order to determine what data are actually

collected by the banks engaged in mortgage lending, CREI undertook a brief informational

survey, the results of which are presented here.  The types of data discussed with each

bank include borrower characteristics, loan characteristics, and the key features of the

type of unit or building being financed. The two main questions were as follows:

!

What data are typically collected by banks during the process of loan

application, underwriting, loan approval, and establishment of the loan in a

portfolio to be serviced?

!

Are any or all of these data computerized?

2.0

RESULTS OF THE SURVEY OF MORTGAGE LENDERS

Not surprisingly, banks are very reluctant to provide any information on their

databases, even if it is general information without any request for various statistics.  In

applications for credit, and in documents attached to the application form, much detailed

information is obtained.  Ultimately, this could provide for a very large database. Some

information is computerized, some is not; some is available using an additional

identification number (PESEL).