RT Journal Article SR Electronic T1 Dutch RMBS JF The Journal of Structured Finance FD Institutional Investor Journals SP 134 OP 137 DO 10.3905/jsf.2012.17.4.134 VO 17 IS 4 A1 Max Bronzwaer YR 2012 UL https://pm-research.com/content/17/4/134.abstract AB This presentation covered the current Dutch RMBS market, including key features of the Dutch mortgage market and key differences between the United States and the Netherlands. Mortgage lending in the Netherlands, with strong government and regulator supervision and a mandatory code of conduct, is based on affordability, not LTVs. The regulation includes, among other things, prescribed rules to test the affordability vis-à-vis income and to determine the maximum loan amount. Dutch house prices were more stable in the years leading up to as well as during the financial crisis. Mortgages are typically for 30 years, and the rates are predominantly fixed, mostly for 5 or 10 years. Because mortgage interest is tax deductible and the build-up of capital in a savings account, insurance policy, or investment fund used to repay a mortgage loan are tax exempt, most Dutch households have relatively little equity investment in their homes. There are very low losses in the Netherlands despite high LTVs because of mortgage lending based on affordability, full recourse in a lender-friendly jurisdiction, high personal savings, a strong social support system, and social disapproval of mortgage defaults.TOPICS: Developed, MBS and residential mortgage loans, CMBS and commercial mortgage loans