program objectives
COST OF THE PROGRAM
The need for objective and analytial education in housing finance has never been more acute. Many
countries are assessing their housing finance systems in the wake of the recent crisis, and both policymakers and private practitioners need cutting-edge information on new developments in lending
procedures, funding models, regulations, and government support for the sector.
“Housing Finance in a Changing Global Environment”, June 1 - 11, 2015.
Program Fees
$5,500*
Early Bird Rate
$5,000**
In the 30-year history of the program, the course has provided participants with the latest knowledge
in housing finance - always adjusting to the changing international context. It has remained focused
on its two core objectives: enhancing the professional ability of the participants; and improving the
short- and long-term effectiveness of their sponsoring organizations. Participants come from private
housing finance institutions, government housing and finance agencies, and academic and international
development institutions from both emerging market and advanced economies.
program format and venue
The program will be held in state-of-the-art facilities at the Wharton School, at the University of
Pennsylvania. Each training module blends academic principles with practical, real-life applications.
Lecturers are recognized leaders in the international housing and real estate fields, and have extensive
experience in housing finance system development and transformation in both advanced and emerging
market economies. Lecturers will follow a structured lesson plan, but will allow for open dialogue
with participants at all times. Case studies will be used where appropriate, and small group discussions
will complement classroom discourse. For all training modules, participants will receive digital
copies of reading materials and hard copies of lecture notes. All lectures are in English. Simultaneous
interpretation in a particular language may be provided if there is sufficient demand for such service.
Workshop on Securitization, June 12 - 13, 2015.
Program Fees
$1,200*
Program fees include training materials, refreshment breaks, and some special lunches and dinners. Participants are responsible for their own hotel accommodations and other meals.
*Registration and payment must be received by Friday May 1, 2015.
**Early Bird registration deadline is Friday March 27, 2015.
METHODS OF PAYMENT
Payment by Bank Transfer
International
Housing Finance
Program 2015
Payment by Check
Wells Fargo Bank N.A. 420 Montgomery Street
San Francisco, CA 94101
Account # 2000018692644
ABA # 121-000-248
Swift Code: WFBUIS6S
For Credit to: The Trustees of the
University of Pennsylvania
Reference: ORG 0816
Make check(s) payable to:
The Trustees of the University of
Pennsylvania
Attn: Marja Hoek-Smit,
Zell/Lurie Real Estate Center
University of Pennsylvania
1462 Steinberg-Dietrich Hall
3620 Locust Walk
Philadlephia, PA 19104-6302 USA
organizing institutions
The Wharton School International Housing Finance Program
Initiated in 1986, IHFP is a comprehensive housing finance program with three complementary
activities: educating senior officials and CEOs, academics and consultants, particularly from emerging
market economies, in the financial, managerial, mathematical, institutional and policy aspects of housing
finance; assisting emerging market economies in expanding education in housing finance; and offering
consulting services in housing finance and housing policy development. The program has educated more
than 3,000 individuals from more than 80 countries. Not sponsored by any special interest group, the
program provides the most objective, comparative and analytical education in the field of interantional
housing finance.
The Wharton School, University of Pennsylvania
Since its founding in 1881 as the world’s first business school, the Wharton School has been a leader
in the field of business education and research in the global economy. The Wharton Real Estate
Department follows this tradition through its international real estate education and research, covering
all areas of importance to real estate including housing finance, commercial real estate finance, and
housing and urban policy. The department is consistently ranked as the nation’s best real estate
program by US News and World Report.
participantS’ EVALUATION
“The International Housing Finance Program of Wharton is a very extensive and in-depth course about
housing finance in emerging markets. It will give you the tools you need in your everyday job and to
assist in strategic policy decisions that need to be made in your organization. The teachers are very
committed and knowledgeable with a hands-on approach.”
Registration Deadline is
accomodations
Participants are responsible for securing hotel accommodations. Due to other events at the same
time as our program, many hotels may fill up. We encourage participants to make arrangements as
early as possible.
Rooms are available at a reduced rate in the Club Quarters Hotel in Center City Philadelphia. It is a
25-minute walk from the Wharton School, and connected to the campus by public transportation.
If you choose to stay at other hotels, here are some alternatives located on the University of
Pennsylvania campus:
The Club Quarters Hotel
1628 Chestnut Street
Philadelphia PA 19103
(203) 905-2100
Group code: UPE531
www.clubquarters.com
The Sheraton Hotel
3549 Chestnut Street
Philadelphia PA 19104
(215) 387-8000
www.philadelphiasheton.
com
The Inn at Penn (Hilton)
3600 Sansom Street
Philadelphia PA 19104
(215) 222-0200
www.theinnatpenn.com
For additional Information
“The course provides and opportunity to meet people from across the world and exchange views on
housing finance systems in their respective countries. The teachers are exceptionally well-informed and
it is a pleasure to attend the program.”
To download an application form:
www.ihfp.wharton.upenn.edu
“I’m so glad I had the opportunity to participate in the IHFP program. Housing finance systems are
critical and urgent for my country (China) and the top priority now is learning as much as we can from
other countries, especially good experiences in emerging markets.”
Email: [email protected]
“I found the workshop extremely fruitful. It has gone a long way to widen my horizon, skill and
competency as a mortgage banker (in Nigeria). I whole-heartedly recommend the course for every
professional mortgage banker from emerging markets because it is capable of impacting our housing
policies positively.”
FRIDAY MAY 1, 2015
Telephone: 215-898-3313 or
215-898-2841
Facsimilie: 215-573-2220
Drs. Marja Hoek-Smit, Director
International Housing Finance Program
Samuel Zell/Robert Lurie Real Estate Center
The Wharton School
University of Pennsylvania
1462 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, Pennsylvania 19104-6304
Samuel Zell and Robert Lurie Real Estate Center
The Wharton School, University of Pennsylvania
Philadelphia, PA
Housing Finance in a Changing
Global Environment
Monday June 1 - Thursday June 11, 2015
Workshop on Securitization
Friday June 12 - Saturday June 13, 2015
INTERNATIONAL HOUSING FINANCE PROGRAM 2015 - HOUSING FINANCE IN A CHANGING GLOBAL ENVIRONMENT
INTRODUCTION
Registration and Welcome
MODULE I
HOUSING MARKETS, HOUSING POLICY & HOUSING FINANCE
This module introduces the context in which housing finance systems operate. It explains the
relationship between housing and the macro-economy, the working of housing markets and the
critical role of policy in the expansion of formal housing markets.
Global Trends in Housing Finance
Dr. Michael Lea, San Diego State University
Housing, the Economy, and the Supply Chain
Drs. Marja Hoek-Smit,Wharton School
Determinants of demand and supply of housing
The workings of the housing market
Policies and regulations to expand housing (finance) markets
Module II
Developing Housing finance Systems
module v
Module IX
PRIMARY MORTGAGE MARKET INNOVATIONS
shari’ah compliant housing finance
This module discusses legal alternatives and state-of-the-art retail delivery and administrative
systems for mortgages lending.
This module explains Shari’ah compliant financial contracts and home finance instruments, and
funding mechanisms.
International Case Studies
Case Studies: Denmark
module vI
development and construction finance
This module discusses different modes of construction or bridge finance and real estate investment
vehicles.
Mr. Fred Cooper, Drs. Marja Hoek-Smit, Ms. Soula Proxenos
This module sets the framework for the remainder of the course by focusing on housing
finance systems development in different regions of the world and explaining the relationship
between housing finance systems and financial sector development.
Developing Housing Finance Systems
Dr. Michael Lea
Effective and ineffective housing finance systems
Requirements for effective housing systems
Borrowing models from other countries
Types of Housing Finance Systems/Strengths and Weaknesses
Dr. Michael Lea, Drs. Marja Hoek-Smit
Portfolio lenders
Temporary lenders plus secondary markets
Government housing banks
module Iii
the business of housing finance
This module explores principles and innovations in managing the profitability and risks of
housing finance institutions.
Profitability and Risk of Housing Finance Institutions
Dr. Haluk ünal, University of Maryland
The balance sheet as the driver of profitability
Credit risk and methods to deal with it
Liquidity risk
Interest rate risk and risk management methods
Value at risk
Module IV
Legal and Underwriting Systems for Housing Finance
Mr. Ken Dorph, Sag Harbor Consulting
Shari’ah Compliant Housing Finance Products in Primary Market
Shari’ah Compliant Securitization - Sukuk
module x
ExPANDING MORTGAGE FINANCE & housing services to lower income groups
This module integrates lessons from the previous topics and applies these methods to
extend housing finance to underserved markets, including mortgage, non-collateralized and
microfinance lending, and financing rental housing. We also analyze different ways to subsidize
housing and housing finance.
Equity, Debt, Real Side, Financial Risks and Pricing
Limits of Mortgage FinanceExpanding in Reaching Down-Market
Drs. Marja Hoek-Smit
Market and policy failures
Incomplete credit markets: lending risks & how to alleviate them, incomes & costs
Equity Investments in Affordable Housing
Dealing with Credit Risk: Mortgage Insurance
Mr. Roger Blood, Oliver Wyman
Visit to Housing Development
Dealing with Credit Risk: Consumer Education
Micro-Mortgages, Micro-Loans for Housing, Savings for Housing
Rental Housing Finance
Drs. Marja Hoek-Smit
module viI
types of funding models
This module explains alternative funding models--deposit-based, refinancing, mortgage bond,
secondary mortgage market models and the risks and constraints each addresses, and conditions
and requirements for their development.
Dr. Michael Lea, Dr.Todd Sinai
Mortgage Funding Basics
Alternative Capital Market Funding Models
Liquidity facilities
Mortgage bond funding
Securitization
Valuing Mortgage Instruments and Their Risks
Mortgage-banked securities as investment instruments
Subsidizing Housing Finance
Drs. Marja Hoek-Smit
Rationales for housing subsidies
Changing subsidies for housing finance systems
Various types of subsidy arrangements for households
International Case Studies
conclusion
Certificate Ceremony
Farewell Dinner
Case Presentation: World Bank/IFC
Module VIII
Safety and soundness of financial institutions
This module analyzes various ways government and the private sector can regulate the safety and
soundness of the housing finance industry in the context of current regulatory reforms. Second, it
addresses disclosure and consumer protection requirements.
Housing Cycles and Bubbles
Drs. Marja Hoek-Smit
Mortgage Instruments
This module teaches underlying legal concepts of the mortgage instrument, mortgage
alternatives, and innovations in mortgage design. It discusses principles of pricing, hedging, and
underwriting in the primary mortgage market.
Dr. Michael Lea, Carol Rabenhorst J.D Mortgage Finance and Land Tenure Lawyer
The Mortgage Instrument: Structure and Design
The legal structure of the mortgage instrument
Testing mortgage designs for robustness
Mortgage design and amortization schedules
Retail Functions
Dr. Michael Lea, San Diego State University
Comparing different modes of loan origination
Loan underwriting: concepts, innovations, credit bureaus, credit scoring
Loan servicing and delinquency management
Loan pricing
The Safety Net in Theory and Practice
Dr. Richard Herring,Wharton School
Real estate cycles and stress tests
Controlling risks by government supervision and regulation
Different regulatory practices
Risk-based capital requirements
Government versus market-based regulatory methods
Market disclosure
Building blocks of the new global regulatory system
From Basel II to Basel III
Consumer Protection
WORKSHOP
SECURITIZATION AND MORTGAGE BONDS
The workshop covers mortgage-backed securities and collateralized mortgage obligations.
Topics covered include structures and pricing, disclosures, and regulation.
Legal Issues and Case Studies Related to Securitization
Mr. David Barbour, Andrews Kurth LLP
Fundamentals for Securitization
Mr. Reggie de Villiers and Mr. Julian Broide, Bank of America-Merrill Lynch
Financial Aspects of Mortgage Bonds
Dr. Ralph Daloisio, Natixis
The Role of Rating Agencies: An International Perspective
Ms. Kruti Muni, Moody’s Investors Service