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Auto Industry on Road to Recovery from Pandemic
After a series of disruptions in March and April that coincided with the widespread outbreak in the U.S., the auto industry has entered a recovery period, though its path forward remains uncertain.
Journal Article
Spotlight: Texas subprime mortgages: metros vary on risky loans--and delinquencies
The current financial crisis has brought a severe decline in subprime mortgage lending. Like the nation, Texas and its metros still have exposure to existing loans. Housing prices, unemployment and overall economic activity will play a significant part in determining how many of them run into trouble.
Working Paper
Student loan relief programs: implications for borrowers and the federal government
As college costs increase and more students fund their education through borrowing, debt load and delinquency rates have become significant problems on a number of levels. Student loan obligations are challenging to manage for new graduates with lower earnings and borrowers in financial hardship. This paper discusses the federal student loan repayment relief programs that are available and estimates their borrower and fiscal impacts. The implications of relief plans on borrowers? costs and the federal budget vary for different loan amounts, income levels, and relief program. {{p}} It is ...
Journal Article
Texas enterprise zone benefits for poor prove elusive
The Texas Enterprise Zone Program does not appear to benefit the financial well-being of residents. An examination of the state program suggests that at best, there is a modest positive impact on the repayment of retail loans.
Working Paper
A Rescue or a Trap?—An Analysis of Parent PLUS Student Loans
Parents taking out loans for their children’s college educations may face an excessive debt burden that jeopardizes their own financial security. This paper examines the experience of Parent Loan for Undergraduate Students (PLUS) borrowers using administrative data from a large student loan guaranty agency. We find that PLUS borrowers are more likely to default if their children attend low-resource institutions, typically ones where lower-income enrollments predominate. Although parent PLUS generally outperforms student loans, PLUS performance is sensitive to program costs during difficult ...
Working Paper
Targeted business incentives and the debt behavior of households
The empirical effects of place-based tax incentive schemes designed to aid low-income communities are unclear. While a growing number of studies find beneficial effects on employment, there is little investigation into other behaviors of households affected by such programs. We analyze the impact of the Texas Enterprise Zone Program on household debt and delinquency. Specifically, we utilize detailed information on all household liabilities, delinquencies, and credit scores from the Federal Reserve Bank of New York Consumer Credit Panel/Equifax, a quarterly longitudinal 5% random sample of ...
Failed Background Check, Drug Testing Stall Hiring of Low-Skilled Workers
Many companies seek to add employees as the state economy continues expanding at an above-average pace. But not all can find the workers they need.
Journal Article
Texans Help Drive National Increase in Auto Loan Debt
Despite strong economic growth in recent years, Texas auto loan delinquency rates have risen to levels approaching those seen just after the Great Recession. A recent drop in the subprime share of auto loan originations? typically involving less-creditworthy buyers? suggests delinquency rates are likely to fall. However, risks remain elevated because of factors including longer loan duration and young borrowers? increasing student loan indebtedness.
Journal Article
Texas Housing and Mortgage Update
The mortgage crisis precipitated a long-lasting economic recession and sent millions of American homeowners into foreclosure. Now, as retail sales, consumer confidence and employment show encouraging progress almost three years after the recession?s end, the housing market is slowly gaining some momentum.
Journal Article
Consumer decisionmaking: insights from behavioral economics
The increased complexity of the financial markets has made it difficult for consumers to choose products that best serve their interests. Behavioral economists explore consumers' psychological process in making decisions, such as immediate gratification, overconfidence, inertia or a lack of cognitive ability to understand the costs and benefits of financial services.