Prerequisites for Mortgage Default Insurance (MI) Success
|
|
- Susanna Singleton
- 5 years ago
- Views:
Transcription
1 Prerequisites for Mortgage Default Insurance (MI) Success Edward J. Szymanoski,,U.S.Departmentof Housing and Urban Development Dubna,, Russia February, 2004
2 Background! Introduction of Government-backed MI in U.S. Banking crisis during the Great Depression» Mortgage money hard to find» Terms very unattractive Creation of Federal Housing Administration (FHA) in 1934! Original purpose of FHA Encourage private mortgage lending with better terms Stimulate job growth by financing housing construction! FHA A Great Success Self sustaining program Over 30 million mortgages insured to date Set standards for underwriting mortgages Paved the way for today s successful private MI industry
3 Prerequisites for Successful MI Need to Consider Nature of mortgage default losses Role of capital in private business Role of government
4 Nature of Mortgage Default Losses Following is an example of a mortgage loan at set-up:! 100 (Property Value)! 80 (Mortgage Balance)! 20 (Equity) Note: Equity at loan set-up usually represents borrower down payment. Over time, equity = current property value minus mortgage balance.
5 Nature of Mortgage Default Losses Mortgage Dynamics: Stable National Economy and Local Housing Market Money Property Value Positive Equity Mortgage Balance Time
6 Nature of Mortgage Default Losses Mortgage Dynamics: National Recession or Local Market Downturn Money Negative Equity Property Value Mortgage Balance Time
7 Nature of Mortgage Default Losses! Stable National Economy and Local Housing Market If borrower defaults due to loss of income (job loss, death, divorce, or other life-crisis event) POSITIVE equity protects lender from loss Lender can access equity by forcing a sale through foreclosure! National Recession or Local Market Downturn If borrower defaults due to loss of income NEGATIVE equity means loss for lender Foreclosure sale will not pay off full loan balance During recession or local downturn borrowers more likely to experience loss of income! Thus losses for lenders increase dramatically when national or local economy is weak
8 Role of Capital! Capital protects long-run solvency of business from short-run run financial difficulty! Capital usually held as liquid assets Used to pay for unexpected losses! Source of Capital: business owners or investors! Riskier businesses need more capital! Riskier businesses pay higher return on capital! Cost of capital affected by risk sharing MI is a form of risk sharing Risk sharing can lower the cost of capital
9 Role of Government! MI backed by the (national) government makes sense When mortgage default risks high or hard to measure When cost of capital prohibitive for private MI company» Government can pay unexpected MI losses out of general revenues» Does not need to actually set aside liquid assets as capital Government guaranty is not without cost» Citizens (taxpayers) pay when high losses incurred! FHA entered the US market in 1934 Risks high and hard to measure Early private MI companies wiped out by default rates nearing 50% by 1933
10 Role of Government! Government MI works best when Effectively risk-managed» Borrowers pay user fees (premiums)» Taxpayers cover catastrophic loss» Government monitors private partner performance Private sector partners share some losses» Incentive for good management and stewardship
11 Role of Government! Private MI makes sense when Risks lower and easier to measure Capital costs for private MIs manageable! Private MI can operate more efficiently than government! Citizens (taxpayers) not at risk for losses! Today in the U.S. Most MI comes from private companies FHA operates to serve higher risk borrowers
12 Conclusion: Prerequisites for Successful MI! Banking and Legal System Risks Acceptable Banks able to make mortgages but need to share risks» To keep loan terms affordable for borrowers» To access secondary mortgage markets for liquidity Legal support for enforcement of mortgage terms! Economic stability Interest rates relatively low and stable Housing prices market based and stable! Social Attitudes Support Mortgage Lending Public acceptance of debt financing Public understands responsibility to repay debt
Printable Lesson Materials
Printable Lesson Materials Print these materials as a study guide These printable materials allow you to study away from your computer, which many students find beneficial. These materials consist of two
More informationTestimony of Michael D. Calhoun President, Center for Responsible Lending. Before the House Committee on Financial Services
Testimony of Michael D. Calhoun President, Center for Responsible Lending Before the House Committee on Financial Services Hearing: A Legislative Proposal to Protect American Taxpayers and Homeowners by
More informationMORTGAGE INSURANCE: WHAT HAVE WE LEARNED? (PART 1)
MORTGAGE INSURANCE: WHAT HAVE WE LEARNED? (PART 1) David McLaughry, FCAS, MAAA CAS Special Interest Seminar, Chicago, IL October 1, 2013 ANTI-TRUST NOTICE The Casualty Actuarial Society is committed to
More informationJUDICIARY COMMITTEE OF THE UNITED STATES HOUSE OF REPRESENTATIVES JANUARY 22, Good afternoon. My name is Christopher Mayer.
TESTIMONY OF CHRISTOPHER J. MAYER JUDICIARY COMMITTEE OF THE UNITED STATES HOUSE OF REPRESENTATIVES JANUARY 22, 2009 Good afternoon. My name is Christopher Mayer. I am the Milstein Professor of Real Estate
More informationPrintable Lesson Materials
Printable Lesson Materials Print these materials as a study guide These printable materials allow you to study away from your computer, which many students find beneficial. These materials consist of two
More informationNAHB Resolution. Comprehensive Framework for Housing Finance System Reform Housing Finance Committee
Resolution No. 5 Date: City: Las Vegas, NV NAHB Resolution Title: Sponsor: Submitted by: Housing Finance Committee Michael Fink WHEREAS, the Housing Act of 1949 established a national over-arching policy
More informationSmall Business Lending Roundtable Committee on Small Business United States House of Representatives
Small Business Lending Roundtable Committee on Small Business United States House of Representatives James Chessen On Behalf of the AMERICAN BANKERS ASSOCIATION My name is James Chessen. I am the chief
More informationTABLE OF CONTENTS. I. Non Discrimination / Equal Opportunity 3. II. Fair Lending Complaints 3. III. Program Preferences 4
Lending Policy 2016 TABLE OF CONTENTS Bridge Investment Community Development Corporation, an Illinois nonprofit corporation (the CDC ) seeks to lend and invest to help economically vibrant communities
More informationThis chapter will describe the different classifications and types of loans, and the types of mortgages.
Principles of Real Estate Chapter 11-Loan Classifications This chapter will describe the different classifications and types of loans, and the types of mortgages. Overview Objectives At the end of this
More informationFHA-Insured Home Loans: An Overview
Katie Jones Analyst in Housing Policy March 28, 2018 Congressional Research Service 7-5700 www.crs.gov RS20530 Summary The Federal Housing Administration (FHA), an agency of the Department of Housing and
More informationSUBJECT: Federal Home Loan Bank of Topeka Homeownership Set-aside Program (HSP)
DATE: February 21, 2018 SUBJECT: Federal Home Loan Bank of Topeka Homeownership Set-aside Program (HSP) Attached is a Fact Sheet for the above referenced grant program, available for homes purchased within
More informationThe Five-Point Plan. Creating a Sustainable Path to Minority Homeownership
The Five-Point Plan Creating a Sustainable Path to Minority Homeownership The National Association of Hispanic Real Estate Professionals, The Asian Real Estate Association of America and the National Association
More informationRadian Guaranty: Ensuring the American Dream with MI MJ Watkins September 2015
Radian Guaranty: Ensuring the American Dream with MI MJ Watkins September 2015 Objective Position Mortgage Insurance (MI) as a resource by helping you understand how to leverage MI to: Expand homeownership
More informationA Citizen s Guide to the 2008 Financial Report of the U.S. Government
A citizens guide to the report of the united states government The federal government s financial health OVERVIEW Fiscal Year (FY) 2008 was a year of unprecedented change in the financial position and
More informationAssistance Program: City of North Lauderdale Purchase Assistance Program Code: DFLLAUDER
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Program Approval Expiration Housing Authority Second mortgage loan program to be used in conjunction
More informationMortgage. A Beginner s. Rates. Guide
Mortgage Rates A Beginner s Guide US Mortgage Corporation (NMLS ID#3901). Corporate Office is located at 201 Old Country Road, Suite 140, Melville, NY 11747; 631-580-2600 or (800) 562-6715 (LOANS15). Licensed
More informationMezzanine Financing. Steven Horowitz and Lise Morrow. Traditional real estate financing has been based on the grant to one or
Mezzanine Financing By Steven Horowitz and Lise Morrow Traditional real estate financing has been based on the grant to one or more lenders by the property-owning borrower (the Mortgage Borrower ) of one
More informationFinancing Residential Real Estate. Lesson 11: FHA-Insured Loans
Financing Residential Real Estate Lesson 11: FHA-Insured Loans Introduction In this lesson we will cover: FHA loan programs, rules for FHA loans (including those governing maximum loan amounts, the minimum
More informationMICA Mortgage Insurance Companies of America Fact Book & Member Directory
MICA Mortgage Insurance Companies of America 2008-2009 Fact Book & Member Directory MICA Mortgage Insurance Companies of America 2008-2009 Fact Book & Member Directory 3 MICA Mortgage Insurance Companies
More informationDEVELOPING MORTGAGE MARKETS IN SLOVENIA
DEVELOPING MORTGAGE MARKETS IN SLOVENIA Matej More Ministry of Finance CONTENTS Where Slovenia Currently is? Situation and regulatory challenges Primary Mortgage Markets Latest developments Developing
More informationIllinois State Treasurer s Office HELPING PEOPLE INVEST IN THEMSELVES
Illinois State Treasurer s Office HELPING PEOPLE INVEST IN THEMSELVES Who is the Illinois State Treasurer? Michael Frerichs was elected Illinois State Treasurer in November 2014. Treasurer Frerichs is
More informationSummary of Senate Banking Committee Leaders Bipartisan Housing Finance Reform Draft
Summary of Senate Banking Committee Leaders Bipartisan Housing Finance Reform Draft The housing market accounts for nearly 20 percent of the American economy, so it is critical that we have a strong and
More informationFREELAND LENDING does Not have a hard limit of how many loans someone may have: FREELAND LENDING will fund up to 100% of the Purchase Price
Asset Based Lending FREELAND LENDING does Not require: o W-2's o Bank Statements o Pay Stubs o Tax returns o Job references o Personal financial statements FREELAND LENDING does Not have a hard limit of
More informationMortgage Terms Glossary
Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see
More informationThe Outlook for Consumer Spending and the Broader Economic Recovery
The Outlook for Consumer Spending and the Broader Economic Recovery Karen E. Dynan, Brookings Institution 1 Testimony before the U.S. Congress Joint Economic Committee October 29, 2009 Chair Maloney, Vice
More informationDODD-FRANK. November 14, 2012 SPONSORED BY MORTGAGE BANKERS OF THE BLUEGRASS
DODD-FRANK November 14, 2012 SPONSORED BY MORTGAGE BANKERS OF THE BLUEGRASS Agenda Objectives Dodd Frank Overview CFPB Mission and Initiatives Pending Legislation - Qualified Mortgages (QM) - Qualified
More informationAssistance Program: City of Tuscaloosa Home Purchase Assistance Program Code: DALTUSHPP
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30-year
More informationThe Mortgage Industry
Financing Residential Real Estate Lesson 4: The Mortgage Industry Introduction In this lesson, we will cover: steps in the residential mortgage process; participants in the process, including loan originators
More informationRequest for Input Enterprise Guarantee Fees
August 14, 2014 BY ELECTRONIC SUBMISSION Federal Housing Finance Agency Office of Policy Analysis and Research Constitution Center 400 7th Street, SW, Ninth Floor Washington, D.C. 20024 Re: Request for
More informationHow the Trump administration can continue progress in U.S. housing
How the Trump administration can continue progress in U.S. housing By Mark Zandi January 5, 2017 While housing has come a long way since the financial crisis, it has yet to fully recover. First-time home
More information1 Anthony B. Sanders, Ph.D. is Professor of Finance at the School of Management at George Mason University
Anthony B. Sanders 1 Oral Testimony House Financial Services Committee March 23, 2010 Hearing on Housing Finance-What Should the New System Be Able to Do? Part I-Government and Stakeholder Perspectives
More informationBank of America Merrill Lynch Leveraged Finance Conference. November 29, 2016 NYSE: RDN
Bank of America Merrill Lynch Leveraged Finance Conference November 29, 2016 NYSE: RDN www.radian.biz 1 AGENDA Post Crisis U.S. Housing Market What is Private Mortgage Insurance? Strong Business Fundamentals
More informationNew Lending Opportunities in the Changed Mortgage Market: Dodd-Frank Act Mortgage Regulations
New Lending Opportunities in the Changed Mortgage Market: Dodd-Frank Act Mortgage Regulations Kenneth Benton Senior Consumer Regulations Specialist May 14, 2014 FEDERAL RESERVE BANK OF PHILADELPHIA Disclaimer:
More informationJack E. Hopkins President and CEO of CorTrust Bank Sioux Falls, SD
Testimony of Jack E. Hopkins President and CEO of CorTrust Bank Sioux Falls, SD On behalf of the Independent Community Bankers of America Before the United States Senate Committee on Banking, Housing and
More informationHousing America s Future: New Directions for National Policy Report of the Bipartisan Policy Center Housing Commission
Housing America s Future: New Directions for National Policy Report of the Bipartisan Policy Center Housing Commission About the Housing Commission Created by the Bipartisan Policy Center, a non-profit
More informationAssistance Program: City of Austin Shared Equity Down Payment Assistance Code: DTXSHARED
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30-year
More informationAssistance Program: City of Tampa Mortgage Assistance Program Code: DFLTAMPA
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30 year
More informationTHE HOUSING & ECONOMIC RECOVERY ACT OF 2008 H.R (DETAILED SUMMARY) DIVISION A. TITLE I REFORM OF REGULATION OF ENTERPRISES
THE HOUSING & ECONOMIC RECOVERY ACT OF 2008 H.R. 3221 (DETAILED SUMMARY) DIVISION A. TITLE I REFORM OF REGULATION OF ENTERPRISES Subtitle A Improvement of Safety and Soundness Supervision. Establishes
More informationBEYOND THE CREDIT SCORE: The Secondary Mortgage Market
BEYOND THE CREDIT SCORE: The Secondary Mortgage Market Housing Action IL Housing Action Illinois is a statewide coalition formed to protect and expand the availability of quality, affordable housing throughout
More information6/18/2015. Residential Mortgage Types and Borrower Decisions. Role of the secondary market Mortgage types:
Residential Mortgage Types and Borrower Decisions Role of the secondary market Mortgage types: Conventional mortgages FHA mortgages VA mortgages Home equity Loans Other Role of mortgage insurance Mortgage
More informationAssistance Program: Marion County Homebuyer Purchase Assistance Program Code: DFLMARION
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30-year
More informationMortgage Insurance What Have We Learned? (Part 2)
Mortgage Insurance What Have We Learned? (Part 2) Prepared for: Prepared by: Date: CAS Special Interest Seminar Chicago, IL Michael A. Henk, FCAS, MAAA Consulting Actuary October 1, 2013 Anti-Trust Notice
More informationFederal Housing Finance Agency Perspectives on Housing Finance Reform. An Ongoing Conservatorship is Not Sustainable and Needs to End
Federal Housing Finance Agency Perspectives on Housing Finance Reform January 16, 2018 An Ongoing Conservatorship is Not Sustainable and Needs to End The current form of government support for the housing
More informationHOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Program Approval Expiration Housing Authority Second mortgage loan program to be used in conjunction
More informationNovember 14, The Honorable Melvin L. Watt Director Federal Housing Finance Agency th St SW Washington, DC 20219
November 14, 2018 The Honorable Melvin L. Watt Director Federal Housing Finance Agency 400 7 th St SW Washington, DC 20219 Re: Enterprise Capital Rules; RIN 2590-AA95 Dear Director Watt: The Independent
More informationWikiLeaks Document Release
WikiLeaks Document Release February 2, 2009 Congressional Research Service Report RL33930 Subprime Mortgages: Primer on Current Lending and Foreclosure Issues Edward Vincent Murphy, Government and Finance
More informationChapter 7. Assumptions Table of Contents
HUD 4155.1 Chapter 7, Table of Contents Chapter 7. Assumptions Table of Contents Chapter 7. Assumptions 1. General Information on Assumptions... 7-1 2. Creditworthiness Review... 7-5 3. LTV Reduction Requirements...
More informationHOUSING FINANCE REFORM PRINCIPLES
HOUSING FINANCE REFORM PRINCIPLES National Association of Federally-Insured Credit Unions NATIONAL ASSOCIATION OF FEDERALLY-INSURED CREDIT UNIONS NAFCU.ORG 1 The National Association of Federally-Insured
More informationMoney and Banking ECON3303. Lecture 9: Financial Crises. William J. Crowder Ph.D.
Money and Banking ECON3303 Lecture 9: Financial Crises William J. Crowder Ph.D. What is a Financial Crisis? A financial crisis occurs when there is a particularly large disruption to information flows
More informationSeptember 8, The Honorable Mel Watt Director, Federal Housing Finance Agency th Street SW, Ninth Floor Washington, DC 20024
September 8, 2014 The Honorable Mel Watt Director, Federal Housing Finance Agency 4000 7 th Street SW, Ninth Floor Washington, DC 20024 Re: Private Mortgage Insurer Eligibility Requirements-Request for
More informationFollowing a decade of neglect, the Bush administration and Congress moved
Journal of Economic Perspectives Volume 3, Number 4 Fall 1989 Pages 3 9 Symposium on Federal Deposit Insurance for S&L Institutions Dwight M. Jaffee Following a decade of neglect, the Bush administration
More informationContact: Emily Riley phone:
Contact: Emily Riley phone: 215.231.1035 email: emily.riley@radian.biz Radian Reports Fourth Quarter and Full Year 2010 Financial Results Reported loss includes a valuation allowance against the net deferred
More informationDon t Raise the Federal Debt Ceiling, Torpedo the U.S. Housing Market
Don t Raise the Federal Debt Ceiling, Torpedo the U.S. Housing Market Failure to Act Would Have Serious Consequences for Housing Just as the Market Is Showing Signs of Recovery Christian E. Weller May
More informationJoe Gendron, Director of Government Relations 5555 Bankers Avenue, Baton Rouge, LA (225) ,
Joe Gendron, Director of Government Relations 5555 Bankers Avenue, Baton Rouge, LA 70808 (225) 214-4837, gendron@lba.org February 15, 2013 Comment Letter Ability-to-Repay Standards under TILA Docket No.
More informationSubmitted via Regulations.gov. September 4, 2015
Submitted via Regulations.gov September 4, 2015 Regulations Division Office of General Counsel Department of Housing & Urban Development 451 7 th Street, SW Room 10276 Washington DC 20410-0500 RE: Single
More informationOverview of Types of Mortgages Available
Overview of Types of Mortgages Available There are many different types of mortgages available to home buyers. They are all thoroughly explained here. But here, for the sake of simplicity, we have boiled
More informationGUIDELINES FOR THE AVERAGE MORTGAGE
GUIDELINES FOR THE AVERAGE MORTGAGE A mortgage lender reviews a loan applicant s financial history to determine the likelihood of receiving on-time payments. The primary items reviewed are: * Income *
More informationPrintable Lesson Materials
Printable Lesson Materials Print these materials as a study guide These printable materials allow you to study away from your computer, which many students find beneficial. These materials consist of two
More informationMacro Lecture 13: Mortgages and Fannie Mae
Macro Lecture 13: gages and Fannie Mae Home gages We shall study three types of mortgages which are used today: Fixed rate Variable (adjusted) rate Graduated payment These mortgages differ in how they
More informationGSE Reform: Consumer Costs in a Reformed System
ONE VOICE. ONE VISION. ONE RESOURCE. GSE Reform: Consumer Costs in a Reformed System In evaluating any proposal for GSE reform, three major objectives must be balanced: protecting taxpayers, attracting
More informationReverse Mortgage FAQs
Reverse Mortgage FAQs NMLS# 1313859 Frequently Asked Questions about Reverse Mortgages At ReverseMortgages.com, we get a lot of questions from our clients about reverse mortgages, the process of getting
More informationChapter 9. Banking and the Management of Financial Institutions. 9.1 The Bank Balance Sheet
Chapter 9 Banking and the Management of Financial Institutions 9.1 The Bank Balance Sheet 1) Which of the following statements are true? A) A bankʹs assets are its sources of funds. B) A bankʹs liabilities
More informationMonetary Policy and the Expanded Loanable Funds Model
Monetary Policy and the Expanded Loanable Funds Model R.J. Barbera Why were central banks created? The Bank of England, one of the first central banks, focused upon preventing financial crises. The simple
More informationAfter-tax APRPlus The APRPlus taking into account the effect of income taxes.
MORTGAGE GLOSSARY Adjustable Rate Mortgage Known as an ARM, is a Mortgage that has a fixed rate of interest for only a set period of time, typically one, three or five years. During the initial period
More informationAssistance Program: Pima County HOME Down Payment Assistance Loan Code: DAZFHRDPA
HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Product Description Allowable Origination Channel Program Name Program Approval Expiration Housing Authority Second mortgage loan program to be used in conjunction
More informationTestimony of. Matthew H. Williams AMERICAN BANKERS ASSOCIATION. Subcommittee on Department Operations, Oversight, and Credit.
Testimony of Matthew H. Williams On Behalf of the AMERICAN BANKERS ASSOCIATION Before the Subcommittee on Department Operations, Oversight, and Credit of the House Committee on Agriculture United States
More informationShadow Banking May 16, 2017
Global Risk Institute Shadow Banking May 16, 2017 Sheila Judd Executive in Residence Presentation Purpose Share information/research findings on the topic, including GRI recommendations for industry oversight:
More informationRaddon Research Insights. Lending Insights: Promoting Growth in a Challenging Lending Environment
Lending Insights: Promoting Growth in a Challenging Lending Environment Contents Executive Summary 3 Introduction 4 Evolution of the Lending Market 4 Cultivating the Home Purchase Market 12 Home Equity
More informationNATIONAL ASSOCIATION OF REALTORS
NATIONAL ASSOCIATION OF REALTORS The Voice for Real Estate 430 North Michigan Avenue Chicago, Illinois 60611-4087 312.329.8411 Fax 312.329.5962 Visit us at www.realtor.org. Coldwell Banker AJS Schmidt
More informationStatement of Matthew R. Shay President & CEO International Franchise Association. Before the House Committee on Small Business
Statement of Matthew R. Shay President & CEO International Franchise Association Before the House Committee on Small Business Hearing on Increasing Access to Capital for Small Businesses October 14, 2009
More informationMoney, Banking, and Finance PLATO Global Government and Economics Mastery Test
Money, Banking, and Finance PLATO Global Government and Economics Mastery Test 1. Money is useful to people because it is: a. a medium of exchange b. prestigious c. nice to look at d. something that makes
More informationKBW Mortgage Finance Conference
KBW Mortgage Finance Conference Bob Quint, Chief Financial Officer June 5, 2012 NYSE: RDN 1 Safe Harbor Statements All statements in this presentation that address events, developments or results that
More informationFinance Operations CHAPTER OBJECTIVES. The specific objectives of this chapter are to: identify the main sources and uses of finance company funds,
22 Finance Operations CHAPTER OBJECTIVES The specific objectives of this chapter are to: identify the main sources and uses of finance company funds, describe how finance companies are exposed to various
More informationLUNCHEON ADDRESS: SMALL BUSINESS ACCESS TO CAPITAL AND CREDIT
45 LUNCHEON ADDRESS: SMALL BUSINESS ACCESS TO CAPITAL AND CREDIT Edward M. Gramlich Member, Board of Governors of the Federal Reserve System Introduction I am pleased to be here today to kick off the conference
More informationCosts & Consequences. Dulles Area Association of Realtors Economic Seminar
Dodd-Frank Costs & Consequences Dulles Area Association of Realtors Economic Seminar September 21, 2011 Leading up to Dodd-Frank "Th f th b k d l k th f th "The further backward you look, the farther forward
More informationEconomics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 10 Banking and the Management of Financial Institutions
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 10 Banking and the Management of Financial Institutions 10.1 The Bank Balance Sheet 1) Which of the following statements are true? A)
More informationPrivate Mortgage-Backed Securitization Under Dodd-Frank, GSE Reform and Beyond
Private Mortgage-Backed Securitization Under Dodd-Frank, GSE Reform and Beyond Date: Monday April 4, 2011 Time: 12PM EDT Duration: 60min Speaker: Clifford Rossi, Executive-in-Residence, Tyser Teaching
More informationGlossary of Real Estate Terms Adjustable-Rate Mortgage (ARM) Amortization. Annual Percentage Rate (APR) Cash Flow
Glossary of Real Estate Terms Adjustable-Rate Mortgage (ARM) An Adjustable-Rate Mortgage (ARM) is a type of loan whose prevailing interest rate is tied to an economic index (like one-year Treasury Bills),
More informationOctober 20, Benefits of FRMs
Testimony of Dr. Anthony B. Sanders Before the U.S. Senate Banking Committee Topic: entitled Housing Finance Reform: Continuation of the 30-year Fixed-Rate Mortgage. October 20, 2011 Mr. Chairman, and
More informationFinance Companies Finance Companies About finance companies Finance companies originated during depression. Installment credit General Electric
Finance Companies Finance Companies About finance companies Finance companies originated during depression. Installment credit General Electric Capital Corporation. Competition from banks increased during
More informationSOLDIERS AND SAILORS RELIEF ACT. by Steven C. Lindberg Freedman Anselmo Lindberg & Rappe LLC September, 2001
SOLDIERS AND SAILORS RELIEF ACT by Steven C. Lindberg Freedman Anselmo Lindberg & Rappe LLC September, 2001 Act. As a result of recent world events, we feel that it is prudent to remind our clients about
More informationP2.T6. Credit Risk Measurement & Management. Michael Crouhy, Dan Galai and Robert Mark, The Essentials of Risk Management, 2nd Edition
P2.T6. Credit Risk Measurement & Management Bionic Turtle FRM Practice Questions Michael Crouhy, Dan Galai and Robert Mark, The Essentials of Risk Management, 2nd Edition By David Harper, CFA FRM CIPM
More informationA Responsible Secondary Market System for Housing Finance
A Responsible Secondary Market System for Housing Finance The Mortgage Finance Working Group organized by The Center for American Progress Proposal as of July 21, 2010 Membership in the Mortgage Finance
More informationHomeowner Affordability and Stability Plan Fact Sheet
Homeowner Affordability and Stability Plan Fact Sheet The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country.
More informationHOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY
Product Description Allowable Origination Channel HOMEOWNERSHIP ASSISTANCE PROGRAM SUMMARY Second mortgage loan program to be used in conjunction with: FHA Fixed Rate Fannie Mae Fixed 30 year Conforming
More informationThe Great Recession (UXL)
The Great Recession (UXL) The recession that began in December 2007 is often called the Great Recession, indicating that, while nowhere near the magnitude of the Great Depression, the downturn was catastrophic
More informationAnother Slant on the Mortgage Crisis. Jack Guttentag Presentation at the Brookings Institution, October 16, 2008
Another Slant on the Mortgage Crisis Jack Guttentag Presentation at the Brookings Institution, October 16, 2008 Known Causes of the Crisis Proximate Causes: Unsustainable boom in house prices caused drastic
More informationProposals to Ensure the Availability of Federal Student Loans During an Economic Downturn: A Brief Overview of H.R and S.
Order Code RL34452 Proposals to Ensure the Availability of Federal Student Loans During an Economic Downturn: A Brief Overview of H.R. 5715 and S. 2815 Updated May 29, 2008 David P. Smole Specialist in
More informationQualified Mortgages-Update. Wilkes B. Hardin, MBA, CFE VP, Lending Compliance WSECU
Qualified Mortgages-Update Wilkes B. Hardin, MBA, CFE VP, Lending Compliance WSECU Agenda Items ATR/QM rule review Impact Discussion Secondary Developments Supervisory Environment Wrap-up/Questions Why?
More informationChapter 13 Multiple Choice Questions
Chapter 13 Multiple Choice Questions / Page 1 Chapter 13 Multiple Choice Questions 1. The primary difference between a secured and unsecured loan is a. whether or not the lender charges interest on the
More informationQualified Mortgages and Qualified Residential Mortgages under the Dodd-Frank Act
Qualified Mortgages and Qualified Residential Mortgages under the Dodd-Frank Act Kenneth Benton Senior Consumer Regulations Specialist Greg Bell Banking Supervisor Consumer Compliance Risk Team FEDERAL
More informationChapter 10: Money and Banking Section 2
Chapter 10: Money and Banking Section 2 Objectives 1. Describe the shifts between centralized and decentralized banking before the Civil War. 2. Explain how government reforms stabilized the banking system
More informationEconomics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 25 Transmission Mechanisms of Monetary Policy
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin) Chapter 25 Transmission Mechanisms of Monetary Policy 25.1 Transmission Mechanism of Monetary Policy 1) Economic theory suggests that interest
More informationA Nation of Renters? Promoting Homeownership Post-Crisis. Roberto G. Quercia Kevin A. Park
A Nation of Renters? Promoting Homeownership Post-Crisis Roberto G. Quercia Kevin A. Park 2 Outline of Presentation Why homeownership? The scale of the foreclosure crisis today (20112Q) Mississippi and
More informationPHILLIPS AREA MICRO-LOAN PROGRAM GUIDELINES
I. OBJECTIVE The purpose of the Phillips Area Micro-Loan Program is to provide affordable financing to new and existing business in the towns of Phillips, Avon and the Unorganized Territory of Madrid in
More informationPART THREE. Answers to End-of-Chapter Questions and Problems
PART THREE Answers to End-of-Chapter Questions and Problems Mishkin Instructor s Manual for The Economics of Money, Banking, and Financial Markets, Eleventh Edition 58 Chapter 1 ANSWERS TO QUESTIONS 1.
More informationChanges in Certain Multifamily Housing and Health Care Facility Mortgage Insurance Premiums for Fiscal Year 2013 Notice Docket No.
Regulations Division Department of Housing and Urban Development 451 7 th Street, S.W., Room 10276 Washington, D.C. 20410-0500 Re: Changes in Certain Multifamily Housing and Health Care Facility Mortgage
More informationS Analysis of Regulatory Relief for Credit Union
S. 2155 Analysis of Regulatory Relief for Credit Union June 2018 SECTION Minimum Standards for Residential Mortgage Loans (Section 101) Adds a new safe harbor category of Qualified Mortgages (QMs) to Section
More informationUnderstanding Reverse Mortgages
Understanding Reverse Mortgages Their Role in Our Economy and the Business Opportunities Created Peter Bell President & CEO National Reverse Mortgage Lenders Association Demographics Household Wealth Profiles
More informationMacroeconomic Adverse Selection: How Consumer Demand Drives Credit Quality
Macroeconomic Adverse Selection: How Consumer Demand Drives Credit Quality Joseph L. Breeden, CEO breeden@strategicanalytics.com 1999-2010, Strategic Analytics Inc. Preview Using Dual-time Dynamics, we
More information