Search Results
Journal Article
The securitization of housing finance
Since 1970, housing finance has undergone a radical transformation due to the securitization of mortgage loans. As the market for mortgage securities continues to grow and develop, this transformation raises a number of important public policy issues.
Journal Article
Turning uncertainty into risk: why data are the key to greater investment
Proceedings of the Conference on the Secondary Market for Community Development Loans. <p> The role of data dominated much of the discussion at the Federal Reserve?s Secondary Market for Community Development Loans Conference. In our discussions of how to attract new investors to the field, the group reviewed all the things that investors are looking for: volume, geographic diversity, homogeneous assets, etc. But what became clear was that, above all, investors need data. Any investment is possible only if the investor has the necessary information?the data?to decide whether to make an ...
Journal Article
Developments in the secondary mortgage market
Journal Article
The introduction of the TMPG fails charge for U.S. Treasury securities
The TMPG fails charge for U.S. Treasury securities provides that a buyer of Treasury securities can claim monetary compensation from the seller if the seller fails to deliver the securities on a timely basis. The charge was introduced in May 2009 and replaced an existing market convention of simply postponing?without any explicit penalty and at an unchanged invoice price?a seller?s obligation to deliver Treasury securities if the seller fails to deliver the securities on a scheduled settlement date. This article explains how a proliferation of settlement fails following the insolvency of ...
Journal Article
Check your guns at the door: how to get together to establish a secondary market
Proceedings of the Conference on the Secondary Market for Community Development Loans <p> Most organizational development professionals are familiar with Spencer Johnson?s book Who Moved My Cheese? Johnson?s tale is simple but insightful and reveals profound truths about change. The four characters in the story live in a maze and they need to look for cheese to nourish them and make them happy. The characters are Sniff, Scurry, Hem, and Haw. ?Cheese? is a metaphor for what you want in life, and ?maze? is where you look for what you want. In the story, the characters face unexpected change, ...
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 ...
Working Paper
Bank capital regulation and secondary markets for bank assets
The paper derives optimal capital requirements, when the bank?s quality is private information. The supervisor can inspect the bank and punish the undercapitalized one with recapitalization and downsizing. The cost of bank?s capital and its ability to sell its assets are crucial for the bank?s incentive to reveal its quality truthfully. The paper provides following policy implications. First, sensitivity of capital requirements to the bank?s quality should be low in good times and high in bad times. Second, a leverage ratio should be accompanied by a requirement that the bank selling its ...
Journal Article
Volatile mortgage rates - a new fact of life?
Mortgage interest rates now move much more closely with capital market rates than in the past. This important development stems in part from the removal of mortgage usury ceilings. But the main reason for the closer relationship of mortgage rates to capital market rates is growth of the secondary mortgage market.
Conference Paper
Commentary: improving secondary markets in rural America
Journal Article
Managing mortgage portfolios calls for complex decisions