Download or read book Overages in Mortgage Pricing written by Harold A. Black and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We conduct an empirical investigation of the relative importance of competing hypotheses that attempt to explain observed differentials in overage pricing. Our analysis makes several contributions. First, we use tobit techniques to estimate the parameters of the model. Second, we include a number of variables that are not available in previous analysis. Specifically, we use borrower and lender characteristics that go beyond gender and race. Third, we are able to consider the impact of the bargaining capabilities of individual loan officers on the overages paid by borrowers, including minorities and women.Using proprietary data from different branches of a particular bank, this paper demonstrates that a large component of the explained variance in overages traces to variables proxying for the degree of competitiveness in the markets associated with these loans, and to differences in the bargaining power and expertise of both loan officers and borrowers. We find differences in overages collected from different ethnic groups, and though it is far too soon to conclude that this is due to bigotry, to the extent that our models are well-specified, this would probably constitute discrimination from a regulatory perspective. Variables controlling for risk prove less effective in explaining overages, perhaps because our sample includes only loans that were actually approved and made. Thus, they all represent relatively good risks, and might not display enough risk variation to detect.

Download or read book Is There Discrimination in Mortgage Pricing written by Harold Alonza Black and published by . This book was released on 2001 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Overages Mortgage Pricing and Race written by Harold A. Black and published by . This book was released on 2003 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Overages, or yield spreads, are common in the pricing of mortgages. However, few customers realize that such yield spreads exist. Given that overages often constitute a significant portion of the income of the mortgage loan officer, one would assume that the loan officer seeks to maximize the yield spreads. Our analysis finds that overages are seldom maximized and in most instances are not included in the price of the mortgage. We find that the bargaining abilities of the loan officers and the borrowers are important in determining the amount of overages paid by borrowers. In particular, we note that there are differences in the incidence of overages and the amount of overages by the race of the applicants. Thus, such behavior would lend itself to scrutiny by the regulatory authorities. The data set is unique and is proprietary data from a national mortgage lending institution located in a major U.S. city with a high population of Hispanics and African-Americans. We find that bargaining power of market participants is an important determinant of overages. We find that the yield spreads of Hispanic applicants who purchase homes are larger than those of whites. We also find that there are no differences by race for black applicants when compared to white applicants. We also find significant racial differences in overages for Hispanics and blacks for houses that are refinanced.

Download or read book Is Discretionary Pricing Discretionary The Case of Overages in Mortgage Lending written by Harold A. Black and published by . This book was released on 2006 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on moral hazard and adverse selection indicates that restricting the ability of lenders to price loans could result in less credit being extended to those in the riskiest credit tier. Given that blacks have worse credit than similarly situated whites, then they would be worse off if overages were banned. Second, borrowers who are unfamiliar with the financial system, such as first-time customers, may require more effort by the loan officer to guide the applicant through the process. Unless lenders can recover the cost of this service, the number of loans to such borrowers will probably decrease. Third, research indicates that blacks do not bargain or comparison shop as much as whites. This implies that, ceteris paribus, markup differences will persist even after accounting for risk, service and demographic variables. Finally, these differences may vary across local markets throughout the country.Future research efforts should analyze loan payment performance after controlling for market forces within the relevant local market. If unexplained pricing differentials exist between minorities and whites, yet loan payments performance is the same, then clearly there exists an arbitrary component to pricing that is probably discriminatory. Alternatively, if unexplained differentials correspond to payment performance, then these differentials are not arbitrary and discriminatory but market driven. Thus, policy makers and regulators should not strive to eliminate differential pricing but should concern themselves with those differences that are unrelated to market forces.

Download or read book Is There Discrimination in Mortgage Pricing The Case of Overages written by Harold A. Black and published by . This book was released on with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Reserve Bank of Atlanta presents the full text of the April 2001 working paper entitled "Is There Discrimination in Mortgage Pricing? The Case of Overages," written by Harold A. Black, Thomas P. Boehm, and Ramon P. DeGennaro. The text is available in PDF format. The authors conclude that the most effective way to eliminate racial differences in overages is to develop policies that allow minorities to bargain more effectively.

Download or read book Is There Discrimination in Overage Pricing written by Harold A. Black and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Mortgage overage pricing is little understood by consumers and has received little academic scrutiny. We consider the impact of the market power of individual loan officers on overages paid by borrowers, particularly minorities. We include numerous borrower and lender characteristics unavailable previously.We find that minorities who purchase homes pay larger overages than whites, but our evidence suggests that this traces to differences in the pools of borrowers rather than to racial discrimination. We conclude that a more effective way to eliminate racial differences in overages is to increase minorities' ability to bargain rather than to enact additional anti-discrimination laws.

Download or read book Fair Lending Compliance written by Clark R. Abrahams and published by John Wiley & Sons. This book was released on 2008-03-14 with total page 356 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for Fair Lending ComplianceIntelligence and Implications for Credit Risk Management "Brilliant and informative. An in-depth look at innovative approaches to credit risk management written by industry practitioners. This publication will serve as an essential reference text for those who wish to make credit accessible to underserved consumers. It is comprehensive and clearly written." --The Honorable Rodney E. Hood "Abrahams and Zhang's timely treatise is a must-read for all those interested in the critical role of credit in the economy. They ably explore the intersection of credit access and credit risk, suggesting a hybrid approach of human judgment and computer models as the necessary path to balanced and fair lending. In an environment of rapidly changing consumer demographics, as well as regulatory reform initiatives, this book suggests new analytical models by which to provide credit to ensure compliance and to manage enterprise risk." --Frank A. Hirsch Jr., Nelson Mullins Riley & Scarborough LLP Financial Services Attorney and former general counsel for Centura Banks, Inc. "This book tackles head on the market failures that our current risk management systems need to address. Not only do Abrahams and Zhang adeptly articulate why we can and should improve our systems, they provide the analytic evidence, and the steps toward implementations. Fair Lending Compliance fills a much-needed gap in the field. If implemented systematically, this thought leadership will lead to improvements in fair lending practices for all Americans." --Alyssa Stewart Lee, Deputy Director, Urban Markets Initiative The Brookings Institution "[Fair Lending Compliance]...provides a unique blend of qualitative and quantitative guidance to two kinds of financial institutions: those that just need a little help in staying on the right side of complex fair housing regulations; and those that aspire to industry leadership in profitably and responsibly serving the unmet credit needs of diverse businesses and consumers in America's emerging domestic markets." --Michael A. Stegman, PhD, The John D. and Catherine T. MacArthur Foundation, Duncan MacRae '09 and Rebecca Kyle MacRae Professor of Public Policy Emeritus, University of North Carolina at Chapel Hill

Download or read book Fair Lending Analysis of Mortgage Pricing written by Yan Zhang and published by . This book was released on 2010 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mortganomics a Critical Examination of Mortgage Lending Practices Pricing and Predatory Abuses written by Terry L. Donovan and published by Smart Books LLC. This book was released on 2009-04-20 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mortganomics teaches readers how to successfully negotiate the terms of a home mortgage with any bank, mortgage lender or broker. It provides detailed examples how lenders price their home loans and how they can subjectively increase a customer's interest rate to create larger commissions and loan costs. It includes samples of lender's rate sheets showing their wholesale costs for the individual interest rates, and explains how to make a lender guarantee that they will charge only their required minimum fees, and nothing extra that would increase force the borrower to take a higher interest rate. It gives readers a step-by-step verifiable method for paying off their mortgage years early, and an easy method to evaluate how competitive their interest rate and terms are in the marketplace. The book sugar coats nothing when it comes to exposing the ways lenders mark up their costs at a borrower's expense, and the ways that they hide important facts from their customers. This book provides dozens of easy to understand loan pricing calculations that readers can use to negotiate their loan terms and detect predatory lending practices.

Download or read book The Color of Credit written by Stephen L. Ross and published by MIT Press. This book was released on 2002-11-08 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analysis of current findings on mortgage-lending discrimination and suggestions for new procedures to improve its detection. In 2000, homeownership in the United States stood at an all-time high of 67.4 percent, but the homeownership rate was more than 50 percent higher for non-Hispanic whites than for blacks or Hispanics. Homeownership is the most common method for wealth accumulation and is viewed as critical for access to the most desirable communities and most comprehensive public services. Homeownership and mortgage lending are linked, of course, as the vast majority of home purchases are made with the help of a mortgage loan. Barriers to obtaining a mortgage represent obstacles to attaining the American dream of owning one's own home. These barriers take on added urgency when they are related to race or ethnicity. In this book Stephen Ross and John Yinger discuss what has been learned about mortgage-lending discrimination in recent years. They re-analyze existing loan-approval and loan-performance data and devise new tests for detecting discrimination in contemporary mortgage markets. They provide an in-depth review of the 1996 Boston Fed Study and its critics, along with new evidence that the minority-white loan-approval disparities in the Boston data represent discrimination, not variation in underwriting standards that can be justified on business grounds. Their analysis also reveals several major weaknesses in the current fair-lending enforcement system, namely, that it entirely overlooks one of the two main types of discrimination (disparate impact), misses many cases of the other main type (disparate treatment), and insulates some discriminating lenders from investigation. Ross and Yinger devise new procedures to overcome these weaknesses and show how the procedures can also be applied to discrimination in loan-pricing and credit-scoring.

Download or read book Discrimination in Financial Services written by George J. Benston and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: Equal treatment in access to credit has long been a fundamental social goal in the United States. However, despite the passage of several laws in the U.S. prohibiting discrimination in the provision of financial services on the basis of race, gender, and marital status, among other factors, questions concerning the existence of racial discrimination in such areas as home mortgage loans and small business credit continue, and confound public policy makers. This book is composed of nine articles and a panel discussion, originally published as a special issue of the Journal of Financial Services Research. These contributions explore the complex issue of discrimination in financial services.

Download or read book Rooting Out Discrimination in Mortgage Lending written by United States. Congress. House. Committee on Financial Services. Subcommittee on Oversight and Investigations and published by . This book was released on 2007 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Monetary Policy and Mortgage Pricing written by Matteo Benetton and published by . This book was released on 2021 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides novel evidence on lenders' mortgage pricing and how central bank policies affected it. Using the universe of mortgages originated in the U.K., we show that lenders seek to segment the market by offering two-part tariffs composed of interest rates and origination fees, and that during recent periods of unconventional monetary policy, such as the U.K.'s Funding for Lending Scheme, lenders decreased interest rates and increased origination fees. To understand lenders' pricing strategies and their effects on market equilibrium, we develop and estimate a structural discrete-continuous model of mortgage demand and lender competition in which borrowers may have different sensitivities to rates and fees. We use the estimated model to decompose the effects of unconventional monetary policies on mortgage pricing and lending, and find that central bank policies increased borrower surplus and lender profits. Moreover, although origination fees allow lenders to price discriminate and capture surplus, banning fees would lower borrower surplus and aggregate welfare.

Download or read book Administration of Insured Home Mortgages written by United States. Department of Housing and Urban Development and published by . This book was released on 1994 with total page 792 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer Financial Services written by Andrew L. Sandler and published by Law Journal Press. This book was released on 2001 with total page 1084 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents an analysis including the impact of more than fifteen federal statutes-ranging from the Civil Rights Act of 1866 to the Fair and Accurate Credit Transactions Act-on the banking.

Download or read book A Companion to Urban Economics written by Richard J. Arnott and published by John Wiley & Sons. This book was released on 2008-04-15 with total page 608 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Companion to Urban Economics provides a state-of-the-artoverview of this field, communicating its intellectual richnessthrough a diverse portfolio of authors and topics. Unique in both its rigor and international treatment An ideal supplementary textbook in upper-level undergraduateurban economics courses, or in master's level and professionalcourses, providing students with the necessary foundation to tacklemore advanced topics in urban economics Contains contributions from the world’s leading urbaneconomists

Download or read book Tax Sales Overages Who Took My Money written by Jeffery Long and published by Jeffery William Long. This book was released on 2021-12-15 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a how-to book on recovering your overage funds from the county that foreclosed on the property. In California, There were 214,323 foreclosures in 2020; 57% down compared to last year and over ten times less than the peak of nearly 2.9 million in 2010. This book will help you get the information to recover the funds your due from the county that foreclosed on your property. BUT don't wait time is not on your side most counties only give you up to five years to get your money back from the sale.