A look at how the quantity and source of information flowing to lenders can affect their credit decisions, and an argument that lenders should take advantage of the CRA provisions that allow them to address their obligations through joint-lending programs and qualified investments.

A look at some of the issues associated with reports that minority applicants for home mortgage loans are far more likely than whites to be denied credit. The authors raise the concern that simple comparisons of denial rates are not sufficient for grasping the complexities surrounding...

An analysis of the prevailing community-lending environment, including a history of the implementation of the Community Reinvestment Act, a discussion of related research studies, and a recommendation of important economic considerations as policymakers attempt to reform the process of enhancing...

In November 1999, the U.S. Congress asked the Board of Governors of the Federal Reserve System to conduct a comprehensive study of loans made under the Community Reinvestment Act of 1977. The Board’s study focused on the loans’ delinquency and default rates—their performance—as well as...

Housing markets in the United States and Canada are similar in many respects, but each has fared quite differently since the onset of the financial crisis. A comparison of the two markets suggests that relaxed lending standards likely played a critical role in the U.S. housing bust.

One type of financial reform being proposed to deal with the aftermath of the housing crisis is allowing bankruptcy judges the authority to modify residential mortgages in a way referred to as a stripdown. The reform is seen by some as a partial solution to the rise in foreclosures and as a...

Nearly one homeowner in ten is more than 90 days delinquent on his mortgage payment. Most of the homes under these mortgages are likely to be repossessed by lenders and resold, which has led some to call them a shadow inventory. How much these homes will affect the broader housing market depends...

A record number of mortgage loans are either in default or in danger of being defaulted upon. Many of the properties that back these loans will end up going through the foreclosure process. A growing body of research shows that foreclosed homes sell at a discount and that foreclosures have a...

Like the now government-owned Fannie Mae and Freddie Mac, large investment banks helped create funds to finance new mortgages by issuing securities backed by pools of existing mortgages. But private firms have abandoned these instruments, and with them a large source of mortgage funds has...

As a result of the subprime mortgage mess, prepayment penalties are under close scrutiny. While these, like other kinds of contract terms, can be abused, there are good reasons for why they exist. In principle, they serve to extend credit to a greater number of borrowers.