Shadowed by the Shadow Inventory

Posted by & filed under Downstream litigation commentary, Foreclosures, New Jersey, Statistical studies.

My former colleague at Seton Hall, Linda Fisher, has posted Shadowed by the Shadow Inventory:  A Newark, New Jersey Case Study of Stalled Foreclosures & Their Consequences on SSRN. The paper presents the findings of a small, but interesting empirical study.  The study “tests the extent to which bank stalling has contributed to foreclosure delays… Read more »

State of the Nation’s Housing 2013: Build It and They Will Come

Posted by & filed under Federal Housing Finance Agency, MBS industry, MBS industry commentary, Regulation, Statistical studies.

The Joint Center for Housing Studies of Harvard University released The State of the Nation’s Housing 2013.  As always there is much of interest in this annual report. I was particularly intrigued by Figure 21 on page 20, “The Government Continues to Have an Outsized Footprint in the Mortgage Market.” The report states Despite efforts… Read more »

Do Foreclosures Cause Crime?

Posted by & filed under Foreclosures, Statistical studies.

The Furman Center says yes.  The Center conducted an empirical study in New York City and found that “foreclosure activity appears to be linked to subsequent crime” if “there have been three or more foreclosure notices issued on a blockface.” (4) The study may give law enforcement agencies something to chew over now (perhaps CrimeStat… Read more »

Asset Quality Misrepresentation in RMBS Market

Posted by & filed under MBS industry, MBS industry commentary, Statistical studies.

Piskorski, Seru & Witkin have posted Asset Quality Misrepresentation by Financial Intermediaries:  Evidence from RMBS Market, in which they “identify misrepresentations by comparing the characteristics of mortgages in the pool that were disclosed to the investors at the time of sale with actual characteristics of these loans at the same time and show that such… Read more »

Misleading CoreLogic Report on Qualified Mortgage Rules

Posted by & filed under CFPB, MBS industry, MBS industry commentary, Media Coverage, Regulation, Statistical studies.

The Wall Street Journal reported (behind its paywall) uncritically on a recently released CoreLogic report about the supposed impact of the new Qualified Mortgage rules issued last month by the CFPB on the mortgage market.  The report is very flawed. The report states that “the issuance of final Dodd-Frank related regulations now underway represent a… Read more »