Search Results

Showing results 1 to 10 of approximately 65.

(refine search)
SORT BY: PREVIOUS / NEXT
Author:Passmore, Wayne 

Working Paper
The Subsidy Provided by the Federal Safety Net: Theory, Measurement, and Containment

This paper presents an intuitive and analytical model of how the federal safety net affects banks' cost of funds. Emphasis is placed on distinguishing between fixed and marginal costs in banking and on the implications of the model for measuring the subsidy. Empirical results strongly suggest that the safety net has benefitted banks and that over recent years bank holding companies have tended to move activities into a bank or a bank subsidiary. We conclude that limiting extension of the safety net subsidy should be a serious concern when designing strategies for expanding bank activities.
Finance and Economics Discussion Series , Paper 1997-58

Working Paper
The Community Reinvestment Act and the Profitability of Mortgage-Oriented Banks

The Community Reinvestment Act (CRA) requires lenders ``to help meet the credit needs of the local communities in which they are chartered, consistent with the safe and sound operation of such institutions.'' For proponents of efficient markets, the CRA is a threat to lender profitability. For others, the CRA has the potential to increase profitability. We examine the relative profitability of commercial banks that specialize in mortgage lending in lower-income neighborhoods or to lower-income borrowers using three different techniques, and find that lenders active in lower-income ...
Finance and Economics Discussion Series , Paper 1997-07

Conference Paper
A summary of \\"Federal Home Loan Bank advances and commercial bank portfolio composition\\"

Proceedings , Paper 1057

Conference Paper
The effect of automated underwriting on adverse selection and on the profitability of mortgage securitization

Proceedings , Paper 562

Working Paper
The Community Reinvestment Act and the profitability of mortgage-oriented banks

The Community Reinvestment Act (CRA) requires lenders "to help meet the credit needs of the local communities in which they are chartered, consistent with the safe and sound operation of such institutions.'' For proponents of efficient markets, the CRA is a threat to lender profitability. For others, the CRA has the potential to increase profitability. We examine the relative profitability of commercial banks that specialize in mortgage lending in lower-income neighborhoods or to lower-income borrowers using three different techniques, and find that lenders active in lower-income ...
Finance and Economics Discussion Series , Paper 1997-7

Working Paper
Federal Home Loan Bank advances and commercial bank portfolio composition

The primary mission of the 12 cooperatively owned Federal Home Loan Banks (FHLBs) is to provide their members financial products and services to assist and enhance member housing finance. In this paper, we consider the role of the FHLBs' traditional product--"advances," or collateralized loans to members--in stabilizing commercial bank members' residential mortgage lending activities. ; Our theoretical model shows that using membership criteria (such as a minimum of 10 percent of the portfolio being in mortgage-related assets) or using mortgage-related assets as collateral does not ensure ...
Finance and Economics Discussion Series , Paper 2007-31

Working Paper
The GSE implicit subsidy and value of government ambiguity

The housing-related government-sponsored enterprises Fannie Mae and Freddie Mac (the "GSEs") have an ambiguous relationship with the federal government. Most purchasers of the GSEs' debt securities believe that this debt is implicitly backed by the U.S. government despite the lack of a legal basis for such a belief. In this paper, I estimate how much GSE shareholders gain from this ambiguous government relationship. I find that (1) the federal government's implicit subsidy of Fannie Mae and Freddie Mac has resulted in a funding advantage for the GSEs over private sector institutions, (2) ...
Finance and Economics Discussion Series , Paper 2003-64

Working Paper
Optimal bank portfolios and the credit crunch

Finance and Economics Discussion Series , Paper 94-19

Working Paper
An efficiency model of deposit pricing and rate rigidity

Finance and Economics Discussion Series , Paper 93-38

Working Paper
GSEs, mortgage rates, and secondary market activities

Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that purchase mortgages and issue mortgage-backed securities (MBS). In addition, the GSEs are active participants in the primary and secondary mortgage markets on behalf of their own portfolios of MBS. Because these portfolios have grown quite large, portfolio purchases as well as MBS issuance are likely to be important forces in the mortgage market. This paper examines the statistical evidence of a connection between GSE actions and the interest rates paid by mortgage borrowers. We find that both portfolio purchases and ...
Finance and Economics Discussion Series , Paper 2005-07

FILTER BY year

FILTER BY Content Type

FILTER BY Jel Classification

G21 7 items

G28 6 items

G01 5 items

G23 4 items

R30 3 items

R38 3 items

show more (7)

FILTER BY Keywords

Mortgages 27 items

Government-sponsored enterprises 11 items

Asset-backed financing 7 items

Bank capital 6 items

Community Reinvestment Act of 1977 6 items

Mortgage loans 6 items

show more (81)

PREVIOUS / NEXT