Housing Finance Summer Academy 2014 20 25 July 2014, Germany
About the Organisers The Housing Finance Summer Academy continues to build upon the foundation created in 2008 2013 by Frankfurt School of Finance & Management in Germany with support from the Housing Development Finance Corporation Ltd. (HDFC) in India. This partnership has proved to offer a unique combination of excellent academic knowledge with thriving practical experience. Frankfurt School of Finance & Management is one of Europe s leading training institutes for financial institutions. Our activities are focused on the needs and requirements of the financial sector. Therefore, Frankfurt School is built on four pillars: Educational Programmes, Educational Consulting in Germany, Research, and International Advisory Services. For the last 20 years, we have been providing innovative banking training and consultancy around the globe. HDFC was established in 1977 as the first specialised Mortgage Company in India. HDFC s primary objective is to meet a social need by promoting home ownership through the provision of long-term finance to households. To date, HDFC has successfully financed 4 million housing units. Who should attend the Housing Finance Summer Academy? The target group of the Housing Finance Summer Academy will be the mid- and upper-level management of institutions involved in housing finance or those that intend to become active in the area. The programme will be particularly interesting for bank managers, heads of retail departments, managers of microfinance institutions, representatives of international finance institutions and supervisors that want to know more about the characteristics of the primary mortgage markets. Other interested people are also welcome to apply to the programme. Overall impression is very good, the academy s materials are interesting and the lectures inspiring. The organization & support from the FS team was extraordinary. The Frankfurt city tour and Barbeque was an excellent idea. Thanks once again for all your hospitality and for making my visit really memorable. Every session was well organized I would like to thank all Frankfurt School staff for your dedication, professionalism, hospitality. Housing Finance Summer Academy was a wonderful experience. 2 HOUSING FINANCE SUMMER ACADEMY 2014
The Programme in a Nutshell Housing finance in developing and emerging countries faces various challenges. Issues related to affordability, lack of housing supply, responsible and efficient underwriting, monitoring and recovery practices, management of risks, and long-term funding sources for mortgage loans require specialized and innovative knowledge in the area. Moreover, aspects of energy efficiency in residential construction and products such as savings schemes for housing or housing microfinance become more relevant. In its seventh year, the Housing Finance Summer Academy aims to help participants develop necessary skills to implement or enhance housing finance operations in their financial institution. Practitioners will obtain deeper insights from various strategies aiming to address the needs of their target market with housing finance solutions. The programme combines academic knowledge with valuable practical orientation of housing finance operations. The main characteristics of the programme are: Carefully selected and prepared sessions that address the most important issues in the value chain of mortgage lending operations at a financial institution Modern and interactive teaching & learning sessions that combine lectures, discussion rounds, group work and practical case studies Presentations and discussions with experts and representatives from the industry who bring the latest developments in housing finance sector closer to the participants Knowledgeable faculty with many years of exposure in the field share their practical experience in housing and construction finance HOUSING FINANCE SUMMER ACADEMY 2014 3
What does the Programme offer you? Housing Finance Summer Academy The Housing Finance Summer Academy is divided into sessions: Origination and underwriting of mortgage loans This session will first give a brief outline of the legal aspects of a mortgage title. It will then focus on the instruments and products available to customers for meeting their housing needs. Furthermore, the session will present the rationale for strong underwriting criteria as well as different underwriting techniques for addressing various target groups and identifying eligible borrowers. Servicing, monitoring and recovery of mortgage loans The remaining stages of the mortgage lending cycle will be presented in this session. State-of-the-art methods for servicing, monitoring and recovery of mortgage loans including negotiation techniques for dealing with problem cases will be introduced. Mechanisms to identify and control fraud in mortgage lending will also be reviewed. The session will be accompanied by practical case studies to reinforce the contents. Housing construction finance and energy efficiency This session addresses the aspect of housing supply, especially in the affordable sector, and the role of financiers in providing financial means in construction activities for tapping un-served housing demand. This part of the session is conceptualised in the form of case studies, covering different aspects from application to tranche disbursement and monitoring of construction process. The other part of the session will provide an introduction to aspects of energy efficiency in residential construction in different climate zones (i.e. heating vs. cooling and ventilation), economic valuations and possibilities of how financial institutions can reflect energy efficiency elements in their housing finance product design. Risk management of mortgage loan portfolio Risk management is absolutely central to housing finance. What could be a greater challenge than making large, long-term loans at very low margins? The session will focus on the key dimensions of risk along the mortgage lending life-cycle, including borrower default probability, the cyclicality of collateral values and the impact of market interest rate developments. The workshop will introduce ways to identify and model risks and give practical examples of how risks can be measured and priced into mortgage rates in a sustainable and equitable manner will be explored. The session will offer a fast-paced mix of fundamental risk management concepts and real life cases from emerging and developing markets that show how financial institutions succeed in managing their mortgage portfolio exposures. Funding strategies including savings products The session will give an overview of funding options and mechanisms including their strategic rationale. In addition, specific features of the bulk funding instruments (like credit lines or covered bonds), will be discussed. Particular attention will also be paid to the local context and the legal conditions influencing the applicability of particular instruments. Furthermore, the session will give insights about combining savings with loan products, like the case of contractual savings schemes for housing. Such instruments can help borrowers to build-up equity, hence facilitating their access to a traditional mortgage loan. In addition savings resources reduce the dependency of financial institutions from capital markets funding. Housing microfinance Housing microfinance has become a very important tool to improve the quality of life and living standards of many lowincome families by making it more affordable for them to finance their shelter. It usually comprises financial products that are adjusted to the needs and repayment capacities of low-income borrowers. They are proving to become complementary elements to traditional mortgage lending in many developing countries. This session will present the general differences between mortgage lending and housing microfinance and will highlight some successful examples in providing such products. 4 HOUSING FINANCE SUMMER ACADEMY 2014
The Methodology of the Programme Focus on practical orientation The course provides knowledge with a clear hands-on focus that is tailored to the needs and the realities of developing and emerging countries. All trainers have extensive practical experience in the field of housing finance, assuring that real life examples from different regions and continents are discussed in the classroom. Integrated knowledge Sessions use modern teaching & learning approaches, mixing lectures, discussions and case studies to ensure highest practical value for the participants. Each training session is carefully designed and led by an expert in the field. A facilitator will guide the participants through the programme and link the sessions to each other. The programme covers the entire value chain approach of housing finance, following an integrated approach and thus allowing in-depth discussion on the whole topic. Talks with industry stakeholders The latest developments in financial markets and their impact on housing finance activities find their place in the sessions and will be the topic of additional presentations. Speakers from the public and private sector will provide insights and share views and ideas with the participants, thereby further enriching the programme week. Networking The programme gives participants the opportunity to get in touch with other practitioners who have implemented housing finance solutions for many years. To support networking after the end of the training, we will invite all Summer Academy participants to join the Frankfurt School Friends & Alumni Portal through which you will be able to stay in touch with your fellow students, alumni of past and future Summer Academies and FS faculty and fellow team members. You can join and launch online communities on professional topics as well as personal interests and will be able to access training materials, exchange experiences and ideas and build or broaden your professional network. Housing Finance Summer Academy 2014 Origination and underwriting of mortgage loans Risk management in mortage lending Funding strategies including savings products Servicing, monitoring and recovery of mortgage loans Housing construction finance Promoting Housing Finance Solutions HOUSING FINANCE SUMMER ACADEMY 2014 5
About the Trainers The Housing Finance Summer Academy faculty will provide the participants with expert knowledge. Experienced senior trainers and practitioners bring together academic and banking excellence. Their worldwide experience combined with real-life examples from their on-going work will be a source of enrichment for interested participants. Suresh Menon Mr Menon has a Bachelor s Degree in Commerce and a Master s Degree in Business Administration. He joined HDFC in 1984 and currently holds the position of Member of Executive Management and is responsible for Policy Implementation & Process Monitoring. He is also responsible for the Internal Audit and IT User Support Group. Prior to this, Mr Menon has worked as Head of the Recoveries department, Area Manager in Baroda and Regional Manager for Mumbai. He was deputed CEO of HDFC General Insurance Company. Furthermore, he has participated in consultancy assignments in Indonesia and is currently coordinating the training assignments with SMF Indonesia. Michael D. Bookstaber Mr Bookstaber, Managing Director of Global Housing Strategies LLC, brings over forty years of experience in the mortgage, housing and banking businesses worldwide. This experience encompasses all areas of mortgage lending, construction finance, and mortgage portfolio management and regulation, ranging from back office functions and organization to front-office functions such as strategic planning, funding, portfolio and pipeline and risk management. In particular, he has developed an expertise in construction finance in both the commercial and residential sectors. He has been involved in numerous due diligence engagements, especially in emerging markets, in which he has reviewed literally thousands of project loans. Mr Bookstaber is a Chartered Financial Analyst and holds a Master s Degree in Operations Research and a Bachelor s Degree in Mathematics. Joachim Bald (PhD) Until 2004 Mr Bald was Vice President and Managing Director of Deutsche Boerse Systems Inc. in Chicago, where he was responsible for operating the electronic futures and options trading platform for the Chicago Board of Trade. Since then he continues to be an acknowledged consultant and trainer in the area of risk management for Frankfurt School. In numerous assignments he has implemented currency and interest rate risk management applications and assisted many institutions in setting-up their integrated risk management frameworks. Amongst others Mr Bald served as Chief Technical Advisor to the Rural Housing Loan Fund in South Africa and performed a strategic review of the Social Housing Fund for the World Bank in Burkina Faso. Recently he supported the Mongolian Mortgage Corporation in strengthening Risk Management and modelling of interest rate risk and prepayment behaviour. Conrad D Souza Mr D Souza has a Master s Degree in Commerce, a Master s degree in Business Administration and is a Senior Executive Program (SEP) graduate of the London Business School. He joined HDFC in 1984 and is currently Member of Executive Management and heads Management Services and Investor Relations department. Mr D Souza is also a member of the Asset Liability Committee. His responsibilities include corporate planning and budgeting, corporate finance, and investor relations. Prior to that, he was the Treasurer of HDFC overseeing resource mobilisation, both domestic and international, and asset liability management. Mr D Souza earlier worked in Operations and Management Services at HDFC and was Regional Manager for Maharashtra. As a consultant to USAID/UNDP and IFC he has undertaken various assignments in Asia, Africa and Eastern Europe. Furthermore, he has been speaker at various international seminars on housing finance. 6 HOUSING FINANCE SUMMER ACADEMY 2014
Administrative Details Tuition and accommodation expenses The total fee for the Housing Finance Summer Academy is EUR 3,300. This fee includes the course fee, all training materials, full-board accommodation in single rooms for the time of training and transport from and to the airport in Frankfurt. Hand-outs, documentation, and background literature will be assembled in a comprehensive participant handbook, which will also be provided on USB device by the end of the training. Applicants that are staff of member institutions of the International Union for Housing Finance and African Union for Housing Finance are entitled to a EUR 300 discount. The Summer Academy is fully tuition-based and is not sponsored directly by any specific donor agency. Accordingly, participants must cover the full costs of the training and/or find a sponsor for their participation. This is also the case for travel expenses from the respective countries of origin to Frankfurt am Main. Training venues Training activities will take place at Frankfurt School s campus in the heart of Frankfurt am Main. Participants will be accommodated in a high-class hotel within walking distance of Frankfurt School. Language The language of instruction will be English. No translation will be provided. Application The application deadline for the course is May 31, 2014. Please note that we select applications on a firstcome, first-served basis, however at the same time we try to form a group of participants with complementary experiences and backgrounds. The number of participants is limited to 30. You can apply online at: www.frankfurt-school.de/summer_academy For more information please contact: Frankfurt School of Finance & Management International Advisory Services Sonnemannstrasse 9 11 60314 Frankfurt am Main Germany Ms. Amelie Feuerstein Mr. Nicolas Parisel Summer Academy Coordinators Tel.: +49 (0)69 154008-882 Fax.: +49 (0)69 154008-4604 summeracademy@frankfurt-school.de HOUSING FINANCE SUMMER ACADEMY 2014 7