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Model of the Internet mortgage market optimization
Author(s) -
Mieloszyk Eligiusz,
Orłowski Aleksander
Publication year - 2009
Publication title -
pamm
Language(s) - English
Resource type - Journals
ISSN - 1617-7061
DOI - 10.1002/pamm.200910262
Subject(s) - commission , business , interest rate , the internet , unemployment rate , unemployment , monetary economics , commerce , economics , finance , macroeconomics , computer science , world wide web
The Internet mortgages are currently a fast growing market, allowing selling mortgages cheaper and faster than in the traditional methods such as in bank departments. Given the specificity of selling mortgages in the Internet, banks try to sell more mortgages by spending more money on advertising and paying higher commission to the brokers selling their products. It is important to optimise the amounts of money in both sectors (the balance of money for advertising and for brokers) and to compare these amounts with the level of mortgages can be sold within this period (which is related to the economic indicators such as the current level of interest rate, unemployment rate etc.)It is suggested to create a knowledge base rule model defining the Internet mortgage market which will include the variables important for the problem (preliminary choice of such indicators the level of commission that is paid to the brokers, the current interest rate in the country), restrictions concentrating optimising the amounts of money that will be spend with the correlation to the current possibilities of selling mortgages (defined by the current situation of the economy). The model will be supported with the data from two banks and two brokers representing the market. (© 2009 Wiley‐VCH Verlag GmbH & Co. KGaA, Weinheim)