| dc.description.abstract | This paper examines the proportion of mortgages issued to total assets held by mortgage
companies in Kenya. The paper also examines the relationship between the types of
mortgage held and the financial performance of the mortgage companies using data for
the period 1993-2002.
The study used secondary data obtained from various documented sources including
financial statements, annual reports, journals, organizational magazines and end of year
reports. Data analysis was carried out using SPSS and Excel computer packages and
regressed using the least squares method.
Previous research has modeled the relationship between stock returns and real economic
activity as a function of production technology. Having identified and determined the
mortgage types, the results obtained show that there indeed exists a significant
relationship between the types 'of mortgage and earnings of the individual institutions. In
addition, the study findings reveal that earnings were greatly influenced by fixed rate
mortgage, income property mortgage and interest only mortgage.
However, with fewer mortgage borrowers, high interest rates, high default rates among
the borrowers, coupled with low performing adjustable rate mortgage and capital rate
mortgage, mortgage institutions have experienced uncoordinated investment decisions
resulting to decreased investment which possibly explain the low financial performance
of mortgage companies in Kenya. | en |
