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As part of Asset Backed Securitization, ABS and MBS represent asset-backed securities and mortgage-backed securities, respectively. Appraisal regarding ABS and MBS is categorized into two, appraisal on relevant basic asset and securities such as ABS and MBS.

Appraisal on ABS and MBS is performed by external appraisal institutions under Securities and exchange law and most of cases, the appraisal is being carried out by accounting firms as a form of due diligence.

Appraisal institutions are partially or entirely involved in the work of estimating the basic price of a certain asset, but due diligence can be considered as a realm of real estate consulting. Therefore, it seems possible that appraisal institutions can not only perform valuation, but act as a proxy in dealing with the work of due diligence.

Most basic assets contain properties that are closely related to covered bonds so that the appraisal focuses on the collateral value of an individual property and three major appraisal methods are being used to estimate it. ABS is issued based on troubled assets so that the liquidation value on various real estates or rights is calculated by using appraisal methods such as DIV, DCF etc.

MBS is a total of present net value of expected cash flow considering default risk. Land equity interest rate model, a part of Option pricing model and Monte Carlo Simulation are used depending on loan program and pooling.
NPL(Non-performing loan) presents an insolvent loan financial company, insolvent loaned money and poor guarantee money loans. NPL appraisal reflects individual characteristics of insolvent loans on a basis of general appraisal methods.