November 10, 2017
How Important Is Skin in The Game?
Haoyang Liu has posted a paper to SSRN that challenges the effectiveness of skin-in-the-game market discipline: Does Skin-in-the-Game Discipline Risk Management? Evidence from Mortgage Insurance. The abstract reads, Many mortgage reform proposals suggest replacing Fannie Mae and Freddie Mac (the GSEs) … Continue reading
November 10, 2017 in Regulation | Permalink | No Comments
November 9, 2017
Your Lender, The Federal Reserve Board
Laurie Goodman and Bing Bai at the Urban Institute have posted Normalizing the Federal Reserve’s Balance Sheet The Impact on the Mortgage-Backed Securities Market. It is quite extraordinary to realize that the Federal Reserve owns nearly a third of outstanding residential … Continue reading
November 9, 2017 in Regulation | Permalink | No Comments
November 7, 2017
Insuring Sustainable Housing
I posted Insuring Sustainable Housing to SSRN (and BePress). The abstract reads, Today’s FHA suffered from many of the same unrealistic underwriting assumptions that have done in so many lenders during the 2000s. It had also been harmed, like other lenders, … Continue reading
November 7, 2017 in Regulation | Permalink | No Comments
October 31, 2017
Relegating Consumer Protection To The Shadows
The Department of the Treasury released its report on Asset Management and Insurance, which follows on the heels of its report on the capital markets. The latest report calls for replacing the term “shadow banking” with “market based finance.” (63) The … Continue reading
October 31, 2017 in Regulation | Permalink | No Comments
October 27, 2017
Fannie and Freddie Visit the Supreme Court
Fannie and Fredddie investors have filed their petition for a writ of certiorari in Perry Capital v. Mnuchin. The question presented is Whether 12 U.S.C. § 4617(f), which prohibits courts from issuing injunctions that “restrain or affect the exercise of … Continue reading
October 27, 2017 in Regulation | Permalink | No Comments
October 24, 2017
Arbitration Rule Hit Job
The department of the Treasury issued a report, Limiting Consumer Choice, Expanding Costly Litigation: An Analysis of the CFPB Arbitration Rule. The report is a hit job on the Consumer Financial Protection Bureau’s new Arbitration Rule. The Arbitration Rule prohibits … Continue reading
October 24, 2017 in Regulation | Permalink | No Comments
October 20, 2017
The Long-Term Effects of Redlining
Daniel Aaronson et al. have posted The Effects of the 1930s HOLC “Redlining” Maps to SSRN. The paper provides empirical support for the argument that discriminatory government policies have consequences that can last for decades, including increased segregation. The abstract … Continue reading
October 20, 2017 in Regulation | Permalink | No Comments
