Transaction costs of mortgage lending operations: concept and classification

Mortgages are an important tool for expanding the residential real estate market, meeting housing demand and, at the same time, increasing the efficiency of credit and investment activities of a commercial bank in the domestic financial market. This instrument is characterized by increased risks in conditions of uncertainty and asymmetry of market information (especially during periods of macroeconomic instability), as well as the presence of additional costs at the pre-and post-mortgage stages. It is proposed to consider these costs in the framework of the transaction theory of the company, which allows not only to correctly identify them conceptually, but also to propose a classification according to the selected attribute. The proposed interpretation of the phenomenon of transaction costs of mortgage lending and their classification is the first and most important step in developing a methodology for assessing and managing costs of this group. An attempt to formalize the transaction costs of mortgage lending in the framework of neo-institutional transaction theory is presented as an author's application for a large complex of work to improve the well-known and develop original tools for economic and mathematical methods and models for assessing and managing the effectiveness of credit and investment activities of Russian banking organizations in the financial markets.