The Regulation on the Determination of the Mortgage Lending Value – Greater Safety in Valuation for Mortgage Purposes
A little over a year after the introduction of the Pfandbrief Act, the Regulation on the Determination of the Mortgage Lending Value (BelWertV) entered into effect on August , 006. In it, property valuation is regulated by law for all Pfandbrief banks. The mortgage banks had previously set standards in many fundamental papers on the mortgage lending value. At many places in the BelWertV, the Federal Financial Supervisory Authority (BaFin) has consistently referred to tried and tested rules of procedure that had previously applied to mortgage banks only. With that, the transparency of the determination of value for the purpose of covering Pfandbriefe has been enhanced appreciably to the benefit of the market participants. This article will give an overview of the BelWertV.