erstain David (2009) examined in his study taken from 2001 to 2008 that in this period there is increase

use of home loans as compared to private mortgage insurance(PMI).he have divided his study into four sections. Section 1 describes why people aregoing more for home loans than PMI. the main reason for this that now home loans market provide Piggybank loans for those people who dont have 20% of down payment. Section2 tells the factors responsible for the growth of home loans and the risks on shifting towardhome equity market without any PMI coverage. PMI can protect lenders from most lossesu p t o 8 0 % o f L T V a n d t h e a b s e n c e o f P M I w i l l r e s u l t i n c o n s i d e r a b l e l o s s e s i n a n environment. Section 3 tells the measures in changes of type of loans. For this he have taken the data from the 2001 and 2007 AHS a joint project by HUD and Census The resultsof this analysis presented in Table One reveal a sharp increase in the Prevalence of owner-occupied properties with multiple mortgages among properties with Newly originated firstm o r t g a g e s . S e c t i o n 4 d e s c r i b e t h e F i n a n c i a l s t a t u s o f s i n g l e lien and multiple-lienhouseholds and for this he have taken the survey of c o n s u m e r f i n a n c e a n d s h o w t h a t financial position is more weaker in multiple loans than the single loans. Vandell, Kerry D (2008) analysis the sharp rise and than suddenly drop down home pricesf r o m t h e p e r i o d 1 9 9 8 2008. changes in prices are for the reasons as such economicfundamentals , the problem was not sub prime lending per se, but the Feds d r a m a t i c reductions, then increases in interest rates during the early- mid-2000 , the housing boomwas concentrated in those markets with significant supply-side restrictions, which tend to be more price-volatile; he problem was not in the excess supply of credit in aggregate, or the increase in sub prime per se, but rather in the increased or reduced presence of certainother mortgage products. La courr, Micheal (2007 ) analysis in his study the factors affected the increase in the levelof Annual percentages rates (APR) spread reporting during 2005 over 2004. the three mainf a c t o r s a r e c h a n g e s i n l e n d e r b u s i n e s s p r a c t i c e s ; ( 2 ) c h a n g e s i n t h e r i s k p r o f i l e o f borrowers; and (3) changes in the yield curve environment. The result show that after controlling for the mix of loan types, credit risk factors, and the yield curve, there was nostatistically significant increase in reportable volume for loans originated directly bylenders during 2005, though indirect, wholesale originations did significantly increase.Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006results will continue to show an increase in the percentage of loans that are higher pricedwhen final numbers are released in September 2007. La cour Micheal (2006) examined the home purchase mortgage product preferences of LMI households. Objectives of his study to analysis the factors that determined factors their choice of mortgage product , is different income groups have some specified need tomet particular product. The role pricing and product substitution play in this segment of themarket and do results vary when loans are originated through mortgage brokers? For thisthey have use the regression analysis and the results are high interest risk reduce loan value. Self employed borrower chooses reduce documented loans than salaried workers.useof this

product type seems to be more prevalent among borrowers with substantial funds for down payment and better credit scores. In case of pricing Multi families requires price premium and larger loans carry lower rate. And the role of time, particularly, the timer e q u i r e d f o r t h e l o a n t o p r o c e e d f r o m a p p l i c a t i o n t o c l o s i n g i t i s f i n d that governmentR u k m i n i D e v i I n s t i t u t e o f A d v a n c e d S t u d i e s 3 6 jjjjjjj

lending taking the longest time and Nonprime loans the shortest time.Mult i f a m i l y properties take longer time in closing. And during peak season take longer time to close.A n d f o r l a s t o b j e c t i v e i t i s f i n d t h a t b r o k e r o r i g i n a t e d l o a n s c l o s e f a s t e r . T h e e f f e c t o f mortgage brokers on pricing and other market outcomes is fertile ground for additional research. Dr. Rangarajan C. (2001) said that the financial system of India built a vast network of financial institutions and markets over times and the sector is dominated by banking sector which accounts for about twothird of the assets of organized financial sector. Haavio, Kauppi (2000) stated that countries where a large proportion of the populationlives in owner occupied housing are experiencing higher unemployment rates. Than countries where the majority of people live in private rental housing, which might suggestthat rental housing enhances labour mobility. In this paper, they develop a simple inter temporal two region model that allow us to compare owner occupied housing markets to rental markets and to analyze how these alternative arrangements allocate people in spaceand time. announced that it will offer loans for Rs. 2-10 lakh at 12.5 percent the lowest rateoffered by any housing finance provider, big brother SBI has taken the rate war in thehome loans category to new heights. This is because, apart from the low rate, the interesto n t h e s e l o a n s i s c a l c u l a t e d o n p r i n c i p a l , w h i c h i s r e d u c e d e v e r y m o n t h u n l i k e o t h e r housing finance companies which calculate interest on annually reducing basis. Narasimham Committee (1991) p o i n t s o u t t h a t a l t h o u g h t h e b a n k i n g s ys t e m i n our c o u n t r y h a s m a d e r a p i d p r o g r e s s d u r i n g t h e l a s t t w o d e c a d e s , t h e r e i s d e c l i n e i n productivity and efficiency and erosion of profitability. The committee strongly makei n d i c a t i o n s o f l i b e r l i s i n g , d e r e g u l a t i n g e c o n o m y t o m a k e I n d i a n b a k i n g s ys t e m m o r e competitive and efficient. Ojha (1987) in his paper "modern international caparison of productivity andP r o f i t a b i l i t y o f p u b i c s e c t o r b a n k s o f I n d i a " m a k i n g C o m p a r i s o n o n t h e b a s i s o f p e r employee indicators and taking examples of state bank group and Punjab National

bank n o t e d t h a t I n d i a n b a n k s a r e t h e l o w e s t i n a l l a c c o u n t s . H o w e v e r s u c h i n t e r n a t i o n a l comparison will not be fair for numbers of reasons. Godse (1983) in his essay, looking a fresh at banking productivity observe tha t productivity aspect is only a t t h e C o n c e p t u a l i z a t i o n s t a g e i n b a n k i n g i n d u s t r y. H e suggested improvement in productivity and procedures, costing of operations and capitalexpenditure etc. Fanning (1982 ) , w h i l e e x a m i n i n g b a n k p r o d u c t i v i t y o f B r i t i s h b a n k s o b s e r v e d t h a t although the productivity of the UK clearing banks is improving, they are still heavily over manned as compared with similar banks else where. Kulkarni (1979) in his study Development responsibility and profitability of banks stated that while considering banks costs and profits, social benefits arising out of it cannotR u k m i n i D e v i I n s t i t u t e o f A d v a n c e d S t u d i e s 3 7 jjjjjjj

be ignored. He suggested that while meeting social responsibility banks should try to makedevelopmental business as successful as possible. Varde and Singh (1979) in a study "profitability of commercial banks" over 15 years gaveconsideration to two types of factors that effects interest rates level s i.e. internal factors(including operational and managerial efficiency of individual basis). Banking Commission (1972 ) reviewed bank operating methods and procedures and maderecommendations for improving and modernizing these, particularly relating to customersservices, credit procedure and internal control systems. It observed that present methods of working out branch profitability are not appropriate and an integrated costing and financialreporting system is needed. Department of Banking operations and development, RBI : Bombay observed that ther a p i d e x p a n s i o n o f b a n k s a c t i v i t i e s s i n c e 1 9 7 0 c a l l e d f o r a p h a s e o f c o n s o l i d a t i o n s t o improve the quality of banks operational efficiency, productivity and customer services.R u k m i n i D e v i I n s t i t u t e o f A d v a n c e d S t u d i e s 3 8 jjjjjjj

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