| dc.description.abstract | This research investigates the impact of unethical practices among property valuers on mortgage valuations in Uganda, with a focus on the delicate nature of secured lending and the potential consequences of valuation failures. The importance of property valuations in the financial sector, particularly in the context of mortgage loans, is underscored by their role in risk management and compliance with regulatory frameworks.
The mortgage market in Uganda, currently valued at Shs1.6 billion ($429,166), is a critical component of the economy, with commercial banks and non-banking financial institutions holding over 50 percent of residential mortgage loans. However, high interest rates for mortgages and a shortage of affordable housing have led many Ugandans to opt for unsecured personal loans to incrementally build their homes.
The study examines the ethical conduct and practices of professional valuers, who play a pivotal role in determining property values for mortgage purposes. Valuers are expected to adhere to codes of ethics and professional standards, such as the Code of Ethical Principles for Professional Valuers and Global Professional and Ethical Standards. Despite these guidelines, the study identifies various reasons for valuers breaching ethical codes, including pressure from clients, personal integrity issues, lack of knowledge, lack of professionalism, and greed.
The problem statement emphasizes the significant risks associated with unethical behavior among valuers, particularly the potential for valuation failures leading to litigation and financial losses for mortgagees in the event of foreclosure. The study highlights the crucial role of valuers in the debt finance landscape of Uganda and the potential negative impact on the economy if funding processes are compromised due to unscrupulous actions.
Through an exploration of these issues, the study aims to identify potential remedies for unethical behavior among valuers and assess the broader implications of such conduct on mortgage valuations in Uganda. Ultimately, the research seeks to contribute to the development of strategies and interventions to mitigate the adverse effects of professional valuers' unethical practices in the mortgage valuation process. | en_US |
