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Household borrowing after personal bankruptcy
Han, Song; Li, Geng - Federal Reserve Board (Board of Governors of the … - 2009
A large literature has examined factors leading to filing for personal bankruptcy, but little is known about household …
Persistent link: https://www.econbiz.de/10004967554
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Testing for adverse selection and moral hazard in consumer loan markets
Edelberg, Wendy - Federal Reserve Board (Board of Governors of the … - 2004
This paper explores the significance of unobservable default risk in mortgage and automobile loan markets. I develop and estimate a two-period model that allows for heterogeneous forms of simultaneous adverse selection and moral hazard. Controlling for income levels, loan size and risk aversion,...
Persistent link: https://www.econbiz.de/10005514125
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Risk-based pricing of interest rates in household loan markets
Edelberg, Wendy - Federal Reserve Board (Board of Governors of the … - 2003
to the interest rate spread between the highest- and lowest-risk borrowers. For those obtaining loans, the premium paid … probability of bankruptcy, the corresponding interest rate increase tripled for first mortgages, doubled for automobile loans and …
Persistent link: https://www.econbiz.de/10005393756
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Reversing the trend: the recent expansion of the reverse mortgage market
Shan, Hui - Federal Reserve Board (Board of Governors of the … - 2009
Reverse mortgages allow elderly homeowners to tap into their housing wealth without having to sell or move out of their homes. However, very few eligible homeowners have used reverse mortgages to achieve consumption smoothing until recently when the reverse mortgage market in the United States...
Persistent link: https://www.econbiz.de/10008616967
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Designing loan modifications to address the mortgage crisis and the making home affordable program
Cordell, Larry; Dynan, Karen; Lehnert, Andreas; Liang, … - Federal Reserve Board (Board of Governors of the … - 2009
Delinquencies on residential mortgages and home foreclosures have risen dramatically in the past couple of years. The mortgage losses triggered a broad-based financial crisis and severe recession, which, in turn, exacerbated the initial financial distress faced by homeowners. Although servicers...
Persistent link: https://www.econbiz.de/10008616970
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Are adjustable-rate mortgage borrowers borrowing constrained?
Johnson, Kathleen W.; Li, Geng - Federal Reserve Board (Board of Governors of the … - 2011
Past research argues that changes in adjustable-rate mortgage (ARM) payments may lead households to cut back on consumption or to default on their mortgages. In this paper, we argue that these outcomes are more likely if ARM borrowers are borrowing constrained, and find that ARM borrowers...
Persistent link: https://www.econbiz.de/10009001762
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Mortgage contract choice in subprime mortgage markets
Elliehausen, Gregory; Hwang, Min - Federal Reserve Board (Board of Governors of the … - 2010
The boom in the subprime mortgage market yielded many loans with high LTV ratios. From a large proprietary database on … contracts. For these high LTV loans, fixed rate mortgages dominate borrowers' choices. We present a very simple model that …, the term structure effect dominates: rising LTV ratios making ARM loans less costly, and more attractive. However, when …
Persistent link: https://www.econbiz.de/10008691026
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Does credit scoring produce a disparate impact?
Avery, Robert B.; Brevoort, Kenneth P.; Canner, Glenn B. - Federal Reserve Board (Board of Governors of the … - 2010
The widespread use of credit scoring in the underwriting and pricing of mortgage and consumer credit has raised concerns that the use of these scores may unfairly disadvantage minority populations. A specific concern has been that the independent variables that comprise these models may have a...
Persistent link: https://www.econbiz.de/10008764382
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Foreclosure's wake: the credit experiences of individuals following foreclosure
Brevoort, Kenneth P.; Cooper, Cheryl R. - Federal Reserve Board (Board of Governors of the … - 2010
persistently higher levels of delinquency on consumer credit (such as auto and credit card loans) in the years that follow …
Persistent link: https://www.econbiz.de/10008764383
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A look at fair lending through the lens of the new HMDA data: a speech before the Consumer Bankers Association 2005 Fair Lending Conference, Arlington, Virginia, November 7, 2005
Olson, Mark W. - Federal Reserve Board (Board of Governors of the … - 2005
Persistent link: https://www.econbiz.de/10010725150