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Net flow rates versus roll rates as non-performing consumer loans forecasting methodologies

De Ribera Martin, Francisco de Asis - In: Revista de métodos cuantitativos para la economía y … 34 (2022), pp. 37-59

Roll rates and net flow rates can be seen as the evolution of ageing of accounts receivable and Markov chains. They are accepted methodologies to model the behavior of non-performing consumer loans by buckets and to predict losses, but we find that quite often they are wrongly used as...

Persistent link: https://www.econbiz.de/10013485817

Debtor Fraud in Consumer Debt Renegotiation

Mikhed, Vyacheslav; Raina, Sahil; Scholnick, Barry; … - 2022

. Finally, we find that those debtors who misreported income had a lower probability of default on their debt repayment plans …

Persistent link: https://www.econbiz.de/10014236487

Information Asymmetries in Consumer Credit Markets : Evidence from Payday Loans

Skiba, Paige Marta; Dobbie, Will - 2011

effect of loan size on default using sharp discontinuities in loan eligibility rules. This allows us to estimate the … magnitude of selection from the cross-sectional correlation between loan size and default. We find evidence of advantageous … of default by 3.7 to 4.2 percentage points, a 20 to 23 percent decrease from the mean default rate. The incentive effect …

Persistent link: https://www.econbiz.de/10014180265

Credit Cycle and Adverse Selection Effects in Consumer Credit Markets – Evidence from the Heloc Market

Calem, Paul Seth - 2011

We empirically study how the underlying riskiness of the pool of home equity line of credit originations is affected over the credit cycle. Drawing from the largest existing database of U.S. home equity lines of credit, we use county-level aggregates of these loans to estimate panel regressions...

Persistent link: https://www.econbiz.de/10013121636

The Welfare Benefits of Pay-As-You-Go Financing

Gertler, Paul J.; Green, Brett; Li, Renping; Sraer, David - National Bureau of Economic Research - 2025

Pay-as-you-go (PAYGo) financing is a novel contract that has recently become a popular form of credit, especially in low- and middle-income countries (LMICs). PAYGo financing relies on lockout technology that enables the lender to remotely disable the flow benefits of collateral when the...

Persistent link: https://www.econbiz.de/10015326477

Consumer Use and Government Regulation of Title Pledge Lending

Zywicki, Todd J. - 2010

Recent years have seen growth in the use of certain types of nontraditional lending products, such as payday lending and auto title lending, and a relative decline of others, such as finance companies and pawnbrokers. Congress is currently considering major new regulations on short-term lending...

Persistent link: https://www.econbiz.de/10013147462

Policy Uncertainty and Household Credit Access : Evidence from Peer-to-Peer Crowdfunding

Li, Xiang - 2020

, and increases loan interest rates and default probabilities …

Persistent link: https://www.econbiz.de/10012853285

The COVID-19 Shock and Consumer Credit : Evidence from Credit Card Data

Horvath, Akos - 2020

We use monthly credit card data from the Federal Reserve's Y-14M reports to study the early impact of the COVID-19 shock on the use and availability of consumer credit. First, we find that in counties severely affected by the pandemic, creditworthy borrowers reduce their credit card balances and...

Persistent link: https://www.econbiz.de/10012832690

Consumer debt and poverty : the default risk gap

Bertoletti, Lucía; Borraz, Fernando; Sanroman, Graciela - 2024

This paper examines the disparity in default risk between vulnerable and non-vulnerable populations in consumer lending … the probability of default. We find that vulnerable individuals have a higher risk than non-vulnerable individuals …. Specifically, interest rates explain at least 30 percent of the risk gap. We also find that the default probabilities faced by …

Persistent link: https://www.econbiz.de/10014557435

Does Loan Maturity Matter in Risk-Based Pricing

Kuvíková, Gabriela - 2015

find that borrowers with a high probability of default are more responsive to maturity than interest rate changes. I also … argue that risk-based pricing may lead to an increase in loan maturity and loan default, rather than alleviating the adverse … selection present on the lending market. Empirical evidence suggests that loan performance is time-dependent and default depends …

Persistent link: https://www.econbiz.de/10013022676