Mortgage Lending Value Expertise

What is the Mortgage Lending Value?
The Mortgage Lending Value concept was first implemented when the Mortgage Banking Act (HBG) was introduced in 1900. In the course of the replacement of the HBG by the Pfandbrief Act (PfandBG) in 2005, the provisions for determining the Mortgage Lending Value was also incorporated into a uniform set of rules with the introduction of the "Ordinance on the determination of the mortgage lending values of land according to §16 (1) and 2 of the Pfandbrief Act" (Mortgage Lending Value Determination Ordinance - BelWertV).
The philosophy of the Mortgage Lending Value is that such an established value must be obtained over the entire term of the loan, regardless of the natural market fluctuations, in the hands-free resale of the property. The Mortgage Lending Value is therefore significantly lower than the market value at the time of the calculation and must not be subject to a positive value adjustment during the entire loan term. Regulatory requirements require that market value and Mortgage Lending Value be monitored at regular intervals. In the event of unusually strong negative market fluctuations, the Mortgage Lending Value must also be checked and, if necessary, reduced. A subsequent increase in the Mortgage Lending Value after the market recovery is beginning is not possible.