Mortgage loans evaluation using Markov chains analysis

• Main Authors: See, Irene N., Santos, Joyce C.
• Format: text
• Language: English
• Published: Animo Repository 1990
• Subjects: Mortgage loans; Markov processes; Cost effectiveness; Programming (Mathematics)
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16323
• Institution: De La Salle University

Markov Chains analysis is believed to be the best method for evaluating existing mortgage loans since it can predict the future state of a system even if the system is undergoing frequent transitions among a number of states.A Pascal program was made to expedite the process of changing raw data into probability states that would generate a probability result of whether the loan would be paid-up or charged off, taking into account the personal analysis of the loan officer. The program is menu-driven so it could easily be accessed. The outcome of the analysis could be presented either on screen or on paper as specified on the menu.