Professor of finance joins expert committee on mortgage credit

Professor Peter Løchte Jørgensen has joined The Ministry of Business and Growth’s expert committee on mortgage credit. The committee will examine the transparency and mobility of the mortgage credit market and make recommendations for how to adjust the current rules.

2016.03.31 | Ingrid Marie Fossum

Peter Løchte Jørgensen

If you have taken out a big loan against your property, you may find that the contribution rate charged by your mortgage credit institution is higher than at another institution. While changing to another credit institution would make good financial sense, this may, however, not be easy to do in practice. In the debate about the competition on the housing market, the current discussion focuses on whether barriers exist for borrowers who want to switch company.

This is the type of case that Professor of Finance Peter Løchte Jørgensen from Aarhus BSS will be dealing with from now on. He has just been selected by the Minister of Business and Growth Troels Lund Poulsen to become part of the ministry’s expert committee on mortgage credit.

“I immediately accepted the offer to join the committee as I find the task very exciting, relevant to society and close to my professional interests and research areas,” says Peter Løchte Jørgensen.

The professor has recently been involved in a related task for the ministry. Here he chaired another expert committee which focused on the gearing-demands for credit institutions – that is the demands for the core capital of credit institutions in proportion to their total balance.

“Our task was to assess possible changes in the regulation of capital demand. These are the specific regulations that Nykredit has referred to in connection to their planned and widely discussed contribution rate increase,” says Peter Løchte Jørgensen.

Peter Løchte Jørgensen is one of three independent members of the expert committee. With Professor Nina Dietz Legind (University of Southern Denmark) in charge, the committee’s task is to examine the mortgage credit regulations and strengthen the market’s transparency and mobility.  The committee must present their recommendations to the Ministry of Business and Growth by 16 September.



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