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Hypoport AG: Digital revolution in mortgage finance - volume of transactions on the marketplace grows significantly

DGAP-News: Hypoport AG / Key word(s): Miscellaneous Hypoport AG: Digital revolution in mortgage finance - volume of transactions on the marketplace grows significantly 20.01.2017 / 07:37 The issuer is solely responsible for the content of this announcement. Press release

Volume of transactions in 2016

Digital revolution in mortgage finance: volume of transactions on the marketplace grows significantly

Berlin, 20 January 2017: The overall market for mortgage finance was smaller in 2016 than in the previous year. In contrast, the EUROPACE marketplace generated growth and thus significantly increased its market share.

For Germany's private housing market, 2016 was characterised by further price rises and a slight increase in completions. This fundamentally very positive market environment for home loans was overtaken by two major events, however. The Mortgage Credit Directive, which came into force in the spring, caused the overall market volume to contract sharply in April and May. Then in November 2016, the market picked up on the back of the first interest-rate hike in 18 months. Although the figures for December from Deutsche Bundesbank are not out yet, the overall market volume in 2016 is likely to be roughly 5 per cent down on the previous year's record volume (2015: EUR244 billion). "The declining volume in the mortgage finance market as a whole shows that the necessary framework for increasing the supply of housing is not being put in place, despite the shortfall in Germany now standing at around one million homes," says Ronald Slabke, Chief Executive Officer of Hypoport AG.

EUROPACE generated a transaction volume of EUR44.7 billion across all product segments in 2016 and thus grew approximately 15 per cent* faster than the market as a whole. Partners from all banking groups benefited once again from this rapid expansion. The Savings Banks Finance Group achieved a transaction volume of EUR3.6 billion in its role as a product supplier and therefore saw its new digital business grow by about a third. The institutions in the cooperative financial network, which notched up a transaction volume of EUR2.7 billion, also increased their involvement in technology-based mortgage finance. "Our marketplace's strong growth shows that advisors and product suppliers in the mortgage finance sector can no longer avoid using digitalised processes, especially since the introduction of the Mortgage Credit Directive," comments Slabke.