Default Risk in the U.S. Mortgage Market

2007 ◽  
Author(s):  
Toby C. Daglish ◽  
Jon A. Garfinkel ◽  
Jarjisu Sa-Aadu
Keyword(s):  
Default Risk ◽  
Mortgage Market ◽  
The U.S

scholarly journals International Real Estate Review

2007 ◽  
Vol 10 (1) ◽  
pp. 151-170
Author(s):  
Cynthia Holmes ◽  
◽  
Michael LaCour-Little ◽  
Keyword(s):  
Default Risk ◽  
Small Sample Size ◽  
Mortgage Lending ◽  
Small Sample ◽  
Mortgage Market ◽  
Multifamily Housing ◽  
Loan Pricing ◽  
Loan Terms ◽  
The Cost ◽  
The U.S

We combine loan data from distinct sources to compare and contrast multifamily mortgage lending in Canada and the U.S. After a general comparison of the multifamily housing markets in the two countries, we focus on loan pricing and non-price contract terms in the two environments. We find longer loan terms in the U.S. compared to Canada and attribute this to the greater liquidity available from a more established secondary mortgage market. We also find that while nominal rates are higher in Canada, mortgage spreads are actually lower, a result likely due to contract features that raise the cost of default for borrowers and restrict prepayments". In terms of loan performance, we found greater prepayment risk in U.S. mortgages and greater default risk in Canadian mortgages, although findings regarding default are limited by small sample size.

scholarly journals Mortgage Securitization and Shadow Bank Lending

2020 ◽  
Author(s):  
Pedro Gete ◽  
Michael Reher
Keyword(s):  
Cross Section ◽  
Financial Stability ◽  
Bank Lending ◽  
Mortgage Market ◽  
Secondary Market ◽  
Market Prices ◽  
Coverage Ratio ◽  
Regulatory Status ◽  
Mortgage Securitization ◽  
The U.S

Abstract We show how securitization affects the size of the nonbank lending sector through a novel price-based channel. We identify the channel using a regulatory spillover shock to the cross-section of mortgage-backed security prices: the U.S. liquidity coverage ratio. The shock increases secondary market prices for FHA-insured loans by granting them favorable regulatory status once securitized. Higher prices lower nonbanks’ funding costs, prompting them to loosen lending standards and originate more FHA-insured loans. This channel accounts for 22% of nonbanks’ growth in overall mortgage market share over 2013–2015. While the shock creates risks for financial stability, homeownership also increases.

scholarly journals Credit Rationing in the U.S. Mortgage Market: Evidence from Variation in FHA Market Shares

2002 ◽  
Vol 51 (2) ◽  
pp. 272-294 ◽  
Author(s):  
Brent W. Ambrose ◽  
Anthony Pennington-Cross ◽  
Anthony M. Yezer
Keyword(s):  
Credit Rationing ◽  
Mortgage Market ◽  
Market Shares ◽  
The U.S

scholarly journals CEO Bonus Compensation and Bank Default Risk: Evidence from the U.S. and Europe

2013 ◽  
Vol 22 (2) ◽  
pp. 47-89 ◽  
Author(s):  
Francesco Vallascas ◽  
Jens Hagendorff
Keyword(s):  
Default Risk ◽  
The U.S ◽  
Ceo Bonus

scholarly journals Regional Redistribution Through the U.S. Mortgage Market

2015 ◽  
Author(s):  
Erik Hurst ◽  
Benjamin Keys ◽  
Amit Seru ◽  
Joseph Vavra
Keyword(s):  
Mortgage Market ◽  
The U.S ◽  
Regional Redistribution

scholarly journals Historically Illustrating the Shift to Neoliberalism in the U.S. Home Mortgage Market

Societies ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 6 ◽  
Author(s):  
Ivis García
Keyword(s):  
Mortgage Market ◽  
Historical Case Study ◽  
Housing Crisis ◽  
Historical Case ◽  
Savings And Loans ◽  
New Policies ◽  
Home Mortgage ◽  
Oil Crises ◽  
Building Societies ◽  
The U.S

This article takes a long view of the U.S. housing market; from its inception as locally owned and operated Building Societies, through one of the first major U.S. housing crises in the early 1930s, as well as through the prosperous and surprisingly stable post-WWII era the so-called “Long Boom” during Keynesianism. As labor shortages became more severe, accompanied by stagflation and the simultaneous urban, fiscal, and oil crises of the late 60s and early 70s, key sectors of the U.S. economy rallied to dismantle established Keynesian policies. While the new policies associated with laissez–faire economic liberalism certainly aided in the mobility of capital, the overall economy as a result of this neoliberal turn became increasingly unstable and inequitable. This article seeks to add knowledge to the neoliberalism theory. The author concludes, based on a historical case study of the Savings and Loans industry, that neoliberalism was not a deterministic overthrow of neoliberal ideologues but a haphazard response to the contradictions of Keynesian logic. It is only from a historical approach that we may be able to understand the current housing crisis, foster policy innovation, and allow for institutional change within the U.S. mortgage market sector.

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