FanThe dissertation composes of two essays on credit risk in mortgage lending and securitization. The first essay studies the impact of credit rating agency interactions on credit rating quality. The second essay focuses on credit risk of high loan-to-value (LTV) mortgage.Wang, Fan...
Introduction违约风险(Default risk)是银行贷款账簿中风险的最重要组成部分。尤其是在经济低迷时期,银行在处理不良贷款(NPLs,Non-Performing Loans)时面临困难。通常,不良贷款被定义为任何超过90天未支付的…
Hence, lenders continually search for better methods to assess credit risk. This research paper examines the better way to assess credit risk in mortgage lending. Information on 250 past and prospective customers of bank was collected from the concerned authority of the bank. Discriminant analysis ...
Risk management refers to more than just procedures for granting a loan. It also takes into account the bank’s big picture. Does a bank’s existing loan procedures leave enough in the bank’s reserves to cover any immediate losses? The 2007 mortgage crisis was in part caused by too many ...
This paper examines discrimination in mortgage lending in teh United States over three decades in 1960 to 1990. We focus on whether deregulation, increased Federal oversight and enhanced competition reduce discrimination as becker's theory suggests (Becker, 1971). We find that discrimination is ...
Due to the severe restrictions on access to credit resulting from the current economic climate, credit risk analysis of mortgage loans has been considered paramount for banking institutions and is currently accompanied by higher credit underwriting standards. In this paper, we present an empirical compa...
Subprime mortgage loans, the most common form of subprime lending, are characterized by higher interest rates and more-stringent requirements to compensate lenders for the higher credit risk involved. By providing credit to individuals who would normally be denied it in the standard (prime) mortgage...
We then apply the properties exhibited in market equilibria to measure the potential costs of misallocating credit risk owing to the type of regulations observed in actual credit markets. Keywords: credit rationing; lending discrimination; market efficiency JEL: G13; G15; O16...
Banks can manage credit risk with several strategies. They can set specific standards for lending, including requiring a certain credit score from borrowers. Then, they can regularly monitor their loan portfolios, assess any changes in borrowers' creditworthiness, and make any adjustments.9 ...
Credit risk is the risk that a borrower will be unable or unwilling to pay back a lender as agreed. When making loans, lenders of all types attempt to analyze the advantages or disadvantages of lending to particular borrowers by attempting to determine t