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Full-Text Articles in Business
Fayetteville And Hot Springs Lead The Recovery In Employment, Giang Ho, Anthony Pennington-Cross
Fayetteville And Hot Springs Lead The Recovery In Employment, Giang Ho, Anthony Pennington-Cross
Finance Faculty Research and Publications
No abstract provided.
Local Predatory Lending Laws: Going Beyond North Carolina, Anthony Pennington-Cross, Giang Ho
Local Predatory Lending Laws: Going Beyond North Carolina, Anthony Pennington-Cross, Giang Ho
Finance Faculty Research and Publications
Following the lead of federal regulations, numerous states, counties and cities have enacted laws designed to reduce predatory lending. There is at least anecdotal evidence that predatory or abusive mortgage lending is primarily concentrated in the subprime market. However, the impact of these local predatory lending laws on the subprime mortgage market is unknown. The primary questions we examine are: do these laws affect the supply and flow of subprime mortgage credit and does the experience in North Carolina, the first state to enact a local predatory lending law, apply to other local laws?
Who Bears The Balloon Risk In Commercial Mbs?, Mark Eppli, Charles C. Tu
Who Bears The Balloon Risk In Commercial Mbs?, Mark Eppli, Charles C. Tu
Finance Faculty Research and Publications
Much of the literature on the pricing of commercial mortgages underlying commercial mortgage-backed securities pools focuses on the effect of term default (default during the term of the loan), and ignores the possibility of balloon risk, the borrower's inability to pay off the mortgage at maturity through refinancing or property sale. A contingent-claims mortgage pricing model that includes two default triggers—a cash flow trigger and an asset value trigger—may be used to assess the effect of balloon risk on the pricing of CMBS tranches. Simulations of cash flows for individual loans in a CMBS framework reveal how individual tranches are …
A Dynamic Look At Subprime Loan Performance, Michelle A. Danis, Anthony Pennington-Cross
A Dynamic Look At Subprime Loan Performance, Michelle A. Danis, Anthony Pennington-Cross
Finance Faculty Research and Publications
Does delinquency have any predictive power for the future performance of a mortgage? Analysis of a sample of subprime mortgages from the Loanperformance database on securitized private-label pool collateral using a two-step estimation procedure to control for the endogeneity of delinquency reveals strong support for the distressed prepayment theory that very delinquent loans are more likely to prepay than to default and that prepayment rates increase substantially as delinquency intensity increases. While delinquency leads predominantly to termination of a loan through prepayment, negative equity leads to termination through default. Does delinquency have any predictive power for the future performance of …
Service Industries Keep Employment Steady In Arkansas' Capital, Anthony Pennington-Cross
Service Industries Keep Employment Steady In Arkansas' Capital, Anthony Pennington-Cross
Finance Faculty Research and Publications
No abstract provided.
Aggregation Bias And The Repeat Sales Price Index, Anthony Pennington-Cross
Aggregation Bias And The Repeat Sales Price Index, Anthony Pennington-Cross
Finance Faculty Research and Publications
No abstract provided.
Borrower Self-Selection, Underwriting Costs, And Subprime Mortgage Credit Supply, Joseph Nichols, Anthony Pennington-Cross, Anthony Yezer
Borrower Self-Selection, Underwriting Costs, And Subprime Mortgage Credit Supply, Joseph Nichols, Anthony Pennington-Cross, Anthony Yezer
Finance Faculty Research and Publications
In the U.S., households participate in two very different types of credit markets. Personal lending is characterized by continuous risk-based pricing in which lenders offer households a continuous distribution of borrowing possibilities based on estimates of their creditworthiness. This contrasts sharply with mortgage markets where lenders specialize in specific risk categories of borrowers and mortgage supply is stepwise linear. The contrast between continuous lending for personal loans and discrete lending by specialized lenders for mortgage credit has led to concerns regarding the efficiency and equity of mortgage lending. This paper sheds both theoretical and empirical light on the differences in …