GSE Loan Purchases, the FHA, and Housing Outcomes in Targeted, Low-Income Neighborhoods

The Government-Sponsored Enterprises and the Mortgage Crisis: The Role of the Affordable Housing Goals

“…19 Bhutta also calculates the UAG effect using minority share of population = 0.30 as a discontinuity and finds "no substantive difference across the cutoff." 20 The first UAG criterion is a very strong instrument, with a first-stage t-statistic of 75.99. cutoff see almost 8 percent fewer GSE purchases than tracts above the cutoff, which is in line with the negative estimate on D i reported by An et al (2007) and others.…”

“…Several issues arise, however, with this simple estimation method. First, as studies like An et al (2007) and Bhutta (2010) show, the number of originations in a tract is positively correlated with the average income and thus the TM ratio of the tract,…”

Second Chances: Subprime Mortgage Modification and Re-Default

“…Examples of this research include Gerardi et al (2008) on all mortgages; An et al (2007) on FHA mortgages and Pennington-Cross and Ho (2006) and Demyanyk and van Hemert (2008), on subprime mortgages.…”

Juvenile Delinquent Mortgages: Bad Credit or Bad Economy?

“…The extensive body of previous research on residential mortgage default has adapted option theory to the study of mortgage valuation, since there exist well-developed theory and empirical methods for valuing financial derivatives and their exercise (Black and Scholes 1973). …”

“…In this case, we are more confident that the borrower would be identified as an "investor" in the LoanPerformance data. Deng and Gabriel (2006) and An, Bostic, Deng and Gabriel (2007) present competing risk estimates for a sample of FHA purchase loans originated between 1992 and 1996. In these studies, lower FICO scores are associated with higher default rates and somewhat lower prepayment rates.…”