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The risks of mortgage lending
Englisch
133 b
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35.10
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Lending on mortgage is a practice whose fundamental purpose is to guarantee the creditor against the debtor's possible failure to pay. However, it is a fact that the creditor is not always protected from incidents relating to his claim, despite the existence of the Certificate of Registration registered on the mortgage on his behalf. This is what we call "risk". The risks of lending on mortgage stem from a number of factors, such as the Certificate of Registration, the grantor of the mortgage and his assigns, third parties, the fragility of the mortgage contract, the failure of the creditor's internal procedures (as in the case of banks), the failure of staff and of our land tenure system, and so on. In fact, we're talking about a whole range of internal and external events, both voluntary and involuntary, which this book groups into Operational Risks and Credit Risks.
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