Was there a regulatory approval market for mortgages?

2015 ◽  
Vol 7 (4) ◽  
pp. 354-365
Author(s):  
Peggy Crawford ◽  
Joetta Forsyth
Keyword(s):  
House Price ◽  
Underserved Area ◽  
Content Type ◽  
Community Needs ◽  
Fannie Mae ◽  
The Usa ◽  
The Government ◽  
Run Up ◽  
The Interest Rate ◽  
Freddie Mac

Purpose – The purpose of this paper is to examine whether the underserved area requirements for Fannie Mae and Freddie Mac (the government-sponsored enterprises [GSEs]) and the community needs requirements of the Community Reinvestment Act (CRA) contributed to the house price run-up in the USA. Design/methodology/approach – This paper predicts the incidence of “Rebounds”, which indicate that a mortgage had been previously denied, to provide evidence on whether certain regulations caused excessively risky mortgage originations. As a different lender rejected the loan given the interest rate that they were willing to charge and information on the borrower, a higher incidence of Rebounds provides evidence that lenders were more frequently disagreeing about loans. This can indicate differences in regulatory pressure or oversight across lenders. Findings – This paper provides evidence that the GSEs were purchasing fewer Rebounds directly from lenders. However, evidence suggests that indirectly, the securitization market served as a conduit for Rebounds to the GSEs that needed to satisfy regulatory underserved area requirements. The necessity of complying with the CRA was found to increase Rebounds. Among regulators, the Federal Reserve was found to have been particularly associated with Rebounds. Originality/value – The paper’s contribution comes from linking Rebounds to legislative and regulatory influences. This contributes to the literature on excess credit and fraud, as well as the effect of underserved area requirements and the CRA. Also, this paper adds a new dimension to the literature on securitization, by showing the influence of regulation on the securitization of risky mortgages.

Holding banks to account for the financial crisis?

2015 ◽  
Vol 23 (1) ◽  
pp. 45-69
Author(s):  
Oonagh Anne McDonald
Keyword(s):  
Financial Crisis ◽  
Housing Policy ◽  
Careful Analysis ◽  
Careful Examination ◽  
Department Of Justice ◽  
Content Type ◽  
Federal Housing ◽  
The Usa ◽  
The Government ◽  
Run Up

Purpose – The purpose of this paper is to examine the ways in which the USA has sought to hold the leading banks to account for the financial crisis and to asses the validity of the methods used. This is the first of two articles which looks at the basis of the Complaints against the banks and the settlements which led to the imposition of large fines on the banks. Design/methodology/approach – The paper first provides an account of the government housing policy from 1995 to 2008 and argues that the cases brought against the banks and then at the legal basis of the charges. The methodology consists of a careful examination of the documentary evidence and an analysis of the changes in the relevant laws used by the Department of Justice when bringing charges against the banks. Findings – The paper concludes that both the basis of the cases against the banks and the purpose of large fines are open to question. Research limitations/implications – Much of the information is available. However, as the major cases against the large banks did not go the court, and the basis of the fines is a settlement between the bank and the Department of Justice, each fine is supported by a relatively brief “Statement of the Facts”. The evidence amassed by subpoenas issued by the Department of Justice is not tested in court. Practical implications – Much greater consideration must be given to more effective ways of holding banks and especially senior executives to account. Social implications – The imposition of large fines does not satisfy the public desire to see that justice is done. Such fines imposed on the ban are not likely to change bank behaviour. Originality/value – Its originality lies in setting out an account of government housing policy and its role in the run-up to the financial crisis. No one has carried out a careful analysis of the cases against the large banks brought by the Department of Justice and, in the second article, by the Federal Housing Finance Agency.

Housing markets and policy in the UK and the USA

2014 ◽  
Vol 7 (1) ◽  
pp. 129-144 ◽  
Author(s):  
Colin Jones ◽  
Harry W. Richardson
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Home Ownership ◽  
House Price ◽  
Housing Markets ◽  
Detailed Comparison ◽  
Exogenous Shock ◽  
Content Type ◽  
The Usa ◽  
The Global Financial Crisis

Purpose – This paper aims to examine how the exogenous shock of the global financial crisis has had a differential impact on the housing markets of the USA and UK. Design/methodology/approach – The paper begins by examining the nature and dynamics of the global financial crisis. It presents a detailed comparison of institutional and housing market characteristics in each country. A particular focus is the differences in mortgage funding and subprime lending trends over the decade leading up to the financial crisis. Findings – The analysis demonstrates the distinctiveness of the recent housing cycles and the geography of the downward price adjustments. Relative unemployment rates play a key role in these outcomes. Despite the different dynamics of the boom and bust, there is a common legacy in terms of the collapse of house building, repossessions/foreclosures and falling home ownership rates. The short-term policy responses by both governments addressed the same target issues in alternative ways but with different outcomes. Longer-term solutions are still being debated in both countries. Originality/value – Innovatory insights are provided by the comparison of the sub-national spatial pattern of the recent house price cycle in two countries.

Portugal’s surprising stability is likely to persist

2017 ◽  
Keyword(s):  
Left Wing ◽  
Content Type ◽  
Political Situation ◽  
Main Challenge ◽  
Socialist Government ◽  
Macroeconomic Indicators ◽  
The Government ◽  
Economic Upturn ◽  
The Interest Rate ◽  
Excessive Deficit Procedure

Subject Portugal's economic and political situation. Significance The European Commission’s recommendation on May 22 to close the excessive deficit procedure opened against Portugal in 2009 constitutes a victory for the minority Socialist government of Antonio Costa. The Costa administration entered office under inauspicious circumstances in November 2015. It has since managed to corral a stable parliamentary majority with its left-wing allies while achieving budgetary consolidation and governing over an economic upturn. Impacts Budgetary consolidation and positive macroeconomic indicators are underpinning a fall in the interest rate on Portuguese bonds. The good economic situation increases pressure on the government to revert to austerity at a faster pace next year. The main challenge for the government will be to ensure that budgetary consolidation continues.

Nigerian banks will struggle to repeat 2017 results

2018 ◽  
Keyword(s):  
Small Businesses ◽  
Banking Sector ◽  
Oil And Gas ◽  
National Elections ◽  
Treasury Bills ◽  
Content Type ◽  
Balance Sheets ◽  
Domestic Debt ◽  
The Government ◽  
Run Up

Subject Nigerian banking sector. Significance Some of Nigeria’s largest banks made significant profits in 2017 despite the country’s recession, benefitting mainly from high-yielding Nigerian Treasury Bills. This is unlikely to be repeated this year, with yields falling as the government replaces expensive domestic debt with cheaper Eurobonds, and banks attempt to shore up their balance sheets. Higher oil prices will help this process, yet many smaller banks are struggling to replicate their larger rivals' success. Impacts A restructuring of telecommunications company 9Mobile’s loan would benefit banks' non-performing loan numbers. Any uptick in Niger Delta insecurity could negatively impact banks, as most have significant loans with the upstream oil and gas sector. The CBN may issue more loans via commercial banks to small businesses and farmers in the run-up to next year's national elections.

scholarly journals Healthcare systems: typologies, framework models, and South Africa’s health sector

2018 ◽  
Vol 23 (2) ◽  
pp. 134-148 ◽  
Author(s):  
Shadrack Katuu
Keyword(s):  
South African ◽  
Healthcare System ◽  
Systems Analysis ◽  
Historical Development ◽  
Health Sector ◽  
Healthcare Systems ◽  
Content Type ◽  
National Healthcare ◽  
The Usa ◽  
The Government

Purpose A healthcare system in any country is rarely the product of one logical policy-making experience, but rather a manifestation of many years of historical development. The purpose of this paper is to examine the characteristics, components, and variables of South Africa’s healthcare system in the context of global patterns. It leverages a dynamic period in South Africa since 1994, and applies a comparative health systems analysis to explain where the country’s healthcare system is, and where it is potentially going. Design/methodology/approach This paper reviews literature related to South Africa’s healthcare system, outlines its historical development, and discusses three fundamental challenges experienced in the country. This paper also reviews the literature on healthcare system typologies and identifies three framework models that have been used to categorise national healthcare systems since the 1970s. This paper then discusses the categorisation of South Africa’s healthcare system in these models, in comparison to Canada and the USA. Findings This paper finds that the framework models are useful tools for comparative analysis of healthcare systems. However, any use of such typologies should be done with the awareness that national healthcare systems are not isolated entities because they function within a larger context. They are not static, since they are constantly evolving with many nuances, even with very similar healthcare system categorisations. Originality/value This paper charts the trajectory of change in the South African healthcare system, and demonstrates that the change process must keep internal conditions in mind if the outcome is to be successful. Imitating policies of countries with well-functioning systems, without regard to local realities, may not work, as the government attempts to usher in changes within a short span of time.

Suriname electoral reform will boost re-election bid

2018 ◽  
Keyword(s):  
Political Parties ◽  
Electoral Reform ◽  
Social Spending ◽  
Legislative Elections ◽  
Content Type ◽  
Oil Development ◽  
The Government ◽  
To Come ◽  
Run Up ◽  
Economic Outlook

Subject Political and economic outlook. Significance President Desi Bouterse’s government has proposed a new electoral reform designed to come into effect before the presidential and legislative elections in 2020. The reform aims to ban electoral alliances between parties, which opposition groups have argued would unfairly disadvantage smaller political parties. It represents an attempt by the Bouterse administration to shore up its position going into the 2020 elections, amid an atmosphere of popular dissatisfaction with the government. Impacts The reform would pave the way for a further NDP victory in 2020, when Bouterse will be 75 years old. The NDP will seek to maintain its legislative majority, which is likely to see a boost in social spending in the run-up to the elections. The dubious motivation behind the electoral reform is unlikely to deter investment; investors have largely priced in the NDP’s dominance. Although international influence in Suriname has waned, future interest in oil development could reverse this.

Assessing Dutch housing cycle and near-term market prospects

2020 ◽  
Vol 13 (2) ◽  
pp. 257-270
Author(s):  
Arvydas Jadevicius ◽  
Peter van Gool
Keyword(s):  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Future Market ◽  
Price Inflation ◽  
Content Type ◽  
Dutch Housing ◽  
The Usa ◽  
Near Term ◽  
The Uk

Purpose This study is a practice undertaking examining three main concerns that currently dominate Dutch housing market debate: how long is the cycle, will the current house price inflation continue and is housing market in a bubble. With national house prices reaching record highs across all major cities, future market prospects became a topic of significant debate among policymakers, investors and the populace. Design/methodology/approach A triangulation of well-established academic methods is used to perform investigation. The models include Hodrick-Prescott (HP) filter, volatility autoregressive conditional heteroskedasticity (ARCH approximation) and right tail augmented Dickey–Fuller (Rtadf) test (bubble screening technique). Findings Interestingly, over the years from 1985 to 2019 research period, filtering extracts only one Dutch national housing cycle. This is a somewhat distinct characteristic compared to other advanced Western economies (inter alia the UK and the USA) where markets tend to experience 8- to 10-year gyrations. Volatility and Rtadf test suggest that current house prices in most Dutch cities are in excess of historical averages and statistical thresholds. House price levels in Almere, Amsterdam, The Hague, Groningen, Rotterdam and Utrecht are of particular concern. Originality/value Retail investors should therefore be cautious as they are entering the market at the time of elevated housing values. For institutional investors, those investing in long-term, housing in key Dutch metropolitan areas, even if values decline, is still an attractive investment conduit.

Policy will cut the risk of booming house prices

2021 ◽  
Keyword(s):  
Financial Stability ◽  
House Prices ◽  
House Price ◽  
Central Banks ◽  
Price Inflation ◽  
Content Type ◽  
Reserve Bank ◽  
Mortgage Backed Securities ◽  
The Us ◽  
The Government

Significance The government in New Zealand, where the market is particularly buoyant, was the first to react in February. It now requires the Reserve Bank to consider house prices when setting monetary policy. Other governments and central banks have shown little sign of following suit. Impacts Calls are rising for the US Federal Reserve to taper its purchases of mortgage-backed securities, but it will remain cautious. Rising financial stability risks and house price booms increase the risk of insolvency for borrowers and non-performing-loans for banks. Higher house prices add indirectly to consumer price inflation if they push up rents, but this link takes time to materialise.

The impact of Zika on local businesses

2017 ◽  
Vol 26 (4) ◽  
pp. 452-457 ◽  
Author(s):  
Timothy F. Page ◽  
Mark L. Williams ◽  
Graziana Cassella ◽  
Jessica L. Adler ◽  
Benjamin C. Amick, III
Keyword(s):  
Local Governments ◽  
Design Methodology ◽  
Well Being ◽  
Content Type ◽  
Business Impact ◽  
Outbreak Areas ◽  
The Usa ◽  
State And Local ◽  
The Government ◽  
The Impact

Purpose In June 2016, the first cases of Zika were reported in the USA in the Wynwood neighborhood of Miami, Florida. The purpose of this paper is to present the results of a survey of Wynwood businesses about their perceptions of their financial well-being and the government and media’s responses to the Zika outbreak. Design/methodology/approach A survey instrument was developed, and 44 owners/managers of Wynwood businesses were interviewed by telephone or in-person during the period when the outbreak was being managed. Findings Businesses reported downturns in revenues, profits, and customer traffic following the Zika outbreak. Believing that the downturn would be temporary, few businesses laid off workers or reduced prices. All businesses reported dissatisfaction with the government’s response to the outbreak. Originality/value This is the first study to document the impact of Zika on businesses located in outbreak areas. The findings highlight the business impact of Zika outbreaks and suggest a need for improved communication and response from state and local governments to business concerns when future outbreaks occur.

Transnational entrepreneurship in emerging markets

2016 ◽  
Vol 10 (2) ◽  
pp. 203-223 ◽  
Author(s):  
Sandra Milena Santamaria-Alvarez ◽  
Martyna Śliwa
Keyword(s):  
Secondary Data ◽  
Policy Action ◽  
Content Type ◽  
The Usa ◽  
Transnational Entrepreneurship ◽  
The Government ◽  
Entrepreneurial Activities ◽  
Transnational Activities ◽  
Role Of The Government ◽  
The Impact

Purpose The purpose of this paper is to discuss the transnational entrepreneurial activities of Colombian emigrants to the USA in the context of the Colombian government’s policies and initiatives aimed at encouraging and facilitating emigrants’ transnational entrepreneurship. It examines the profile of Colombian emigrants, the entrepreneurial transnational activities they pursue and the actual and potential role of the government in instigating and shaping these activities. Design/methodology/approach The paper analyzes data obtained from focus groups with migrant families and interviews with governmental officials and an expert researcher. It also evaluates secondary data sources relevant to the subject of the paper. Findings The impact of transnational activities of Colombian migrants upon Colombian economy and society is much lower compared with the activities of migrants in other countries and with the potential these activities could have for contributing to the economic development of Colombia. Possible causes of this include: the specific characteristics of the Colombian emigrant and entrepreneur profile, the fragmentation of transnational networks of the migrants and the lack of governmental strategies to support the development of transnational activities of migrants. Originality/value The paper contributes to the debates on emigrant–state relation through offering an analysis of migrant entrepreneurship, technology and knowledge transfer and investment activities of Colombian emigrants in the home country. It also provides recommendations for policy action and concrete government programs that might encourage greater involvement of Colombian migrants in high value-adding activities that could benefit the country’s development.

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