Search Results

Showing results 1 to 10 of approximately 66.

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

Conference Paper
A proposal for \"financial institutions' secured asset-backed insurance fund\" or FINSAIF

Proceedings , Paper 1139

Conference Paper
The subsidy provided by the federal safety net: theory and measurement

Views about the value to depository institutions of the federal safety net differ widely. Resolution of the issue is important because defining the appropriate relationship between the federal safety net and financial institutions is central to the design of efficient financial modernization strategies. A model is presented of how the safety net subsidy affects the size of the banking system and the behavior of banks. The model suggests that banks should have lower capital ratios than similar nonbank financial firms. Evidence is presented that supports this prediction, and that banks have ...
Proceedings , Issue Sep

Conference Paper
Can banks profitably fund mortgages?

Proceedings , Paper 341

Working Paper
An analysis of government guarantees and the functioning of asset-backed securities markets

Mortgage securitization has been tried several times in the United States and each time it has failed amid a credit bust. In what is now a familiar recurring history, during the credit boom, underwriting standards are violated and guarantees are inadequately funded; subsequently, defaults increase and investors in mortgage-backed securities attempt to dump their investments. ; We focus on a specific market failure associated with asset-backed securitization and propose a tailored government remedy. Our analysis of loan market equilibriums shows that the additional liquidity provided by ...
Finance and Economics Discussion Series , Paper 2010-46

Working Paper
The GSE implicit subsidy and the 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 government's ambiguous relationship with Fannie Mae and Freddie Mac imparts a substantial implicit subsidy to GSE shareholders, (2) the implicit government ...
Finance and Economics Discussion Series , Paper 2005-05

Journal Article
GSE guarantees, financial stability, and home equity accumulation

Before 2008, the government?s ?implicit guarantee? of the securities issued by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac led to practices by these institutions that threatened financial stability. In 2008, the Federal Housing Finance Agency placed these GSEs into conservatorship. Conservatorship was intended to be temporary but has now reached its tenth year, and policymakers continue to weigh options for reform. In this article, the authors assess both implicit and explicit government guarantees for the GSEs. They argue that adopting a legislatively defined ...
Economic Policy Review , Issue 24-3 , Pages 11-27

Working Paper
Market power and the pricing of mortgage securitization

Finance and Economics Discussion Series , Paper 187

Working Paper
GSEs, mortgage rates, and the long-run effects of mortgage securitization

Our paper compares mortgage securitization undertaken by government-sponsored enterprises (GSEs) with that undertaken by private markets, with an emphasis on how each type of mortgage securitization affects mortgage rates. We build a model illustrating that market structure, government sponsorship, and the characteristics of the mortgages securitized are all important determinants of mortgage rates. We find that GSEs generally--but not always--lower mortgage rates, particularly when the GSEs behave competitively, because the GSEs' implicit government backing allows them to sell securities ...
Finance and Economics Discussion Series , Paper 2001-26

Working Paper
Financing Affordable and Sustainable Homeownership with Fixed-COFI Mortgages

The 30-year fixed-rate fully amortizing mortgage (or ?traditional fixed-rate mortgage?) was a substantial innovation when first developed during the Great Depression. However, it has three major flaws. First, because homeowner equity accumulates slowly during the first decade, homeowners are essentially renting their homes from lenders. With this sluggish equity accumulation, many lenders require large down payments. Second, in each monthly mortgage payment, homeowners substantially compensate capital markets investors for the ability to prepay. The homeowners might have better uses for this ...
Finance and Economics Discussion Series , Paper 2018-009

Discussion Paper
The Stability of Safe Asset Production

A safe asset is a debt instrument that is expected to maintain its value over time, especially during adverse systemic events. Changes in the supply of safe assets can have a significant influence on short-term, risk-free interest rates. (Ferreira & Shousha, 2020) "When the scarcity of safe asset[s] is acute, the zero lower bound (ZLB) becomes binding and the safe asset market equilibrates via a reduction in output…"
FEDS Notes , Paper 2020-11-09-3

FILTER BY year

FILTER BY Content Type

FILTER BY Jel Classification

G21 10 items

G28 6 items

G01 5 items

G23 4 items

R30 3 items

R38 3 items

show more (9)

FILTER BY Keywords

Mortgages 26 items

Government-sponsored enterprises 12 items

Asset-backed financing 7 items

Bank capital 6 items

Community Reinvestment Act of 1977 6 items

Mortgage loans 6 items

show more (80)

PREVIOUS / NEXT