There is also significant heterogeneity in the underlying statistics. For example, the survey just mentioned showed differences with regard to the LTV definitions and the methods of collecting and aggregating data across Europe. Should the value of the real estate be recorded at mortgage issuance? Or, should it be updated? If so, how? Should there be a difference between first homes and other houses?
The list could continue. Each different answer to any of these questions may give rise to methodological differences in computed LTVs. These discrepancies hamper cross-country comparisons; going forward, they can hinder MAP implementation and coordination among the euro-area countries. Work to harmonize statistics in this field is beginning in the light of the forthcoming establishment of the Single Supervisory Mechanism (SSM).