David M. Harrison, Ph.D. Real Estate Finance Texas Tech University The Development of Mortgage...

David M. Harrison, Ph.D.Real Estate FinanceTexas Tech University

The Development of Mortgage Markets

1950’s – A Decade of Stability Maturity Mismatch???

Inflation: Regulation Q:

1960’s – Creeping Inflation, Disintermediation, and the rise of the Secondary Mortgage Market

1970’s – FRM Problems with Inflation The “Tilt” Effect

Supply Problems

Continued Growth of the Secondary Market

The “Tilt” Effect

1980’s – Deregulation, the Growth of AMI’s, and the Thrift Crisis

The Thrift Crisis

Regulatory Failure: FSLIC Forbearance

Additions to Net Worth

RAP vs. GAAP Accounting

The “Zombie” Theory

FIRREA to the Rescue??? Changes Mandated FIRREA

Limitations of FIRREA

Risk-Based Capital GuidelinesAsset Risk Weight Book Value

Treasuries/GNMAs 0 $2,000,000

FreddieMac/FannieMae MBS 20 $5,000,000

Residential Mortgages 50 $4,000,000

Commercial Mortgages 100 $3,000,000

Real Estate Owned (REO) 200 $1,000,000

Calculating Net Worth for S&L’s Period 1: 1-year market rate=7%, 30-year market rate=9%

Assets 30-year mortgages, 9% coupon – BV=$50,000,000 Building and Land – BV=$5,000,000

Liabilities 1-year CDs at 1-year market rate – BV=$50,000,000

Equity = ?

Period 2: 1-year market rate=8%, 30-year market rate=10% Assets:

30-year mortgages, 9% coupon – BV=$50,000,000 Building and Land – BV=$5,000,000

Liabilities: 1-year CDs at 1-year market rate – BV=$50,000,000

Equity = ?

1990’s – Dominance of the Secondary Market

2000’s – Continued Dominance of the Secondary Market, Development of Sub-prime markets, and the housing crunch

David M. Harrison, Ph.D. Real Estate Finance Texas Tech University The Development of Mortgage...

Documents

Tobias Adrian and Markus K. Brunnermeier · 1. Externalities “stability is a public good” 1. Fire-sale externality Maturity mismatch + Leverage liquidity Raise new funds FUNDING

Business model test accounting mismatch · Business model test FVO for accounting mismatch ... • Gain when credit quality deteriorates, ... enlarge an accounting mismatch

stručni članak · The data collected from the contractual maturity mismatch should at least provide the data on the categories outlined in the Liquidity Coverage Ratio (LCR). Banks

Business Overview - hkmc.com.hk · Business Overview Funding maturity mismatch Banks active in mortgage business usually have strong retail networks and they tend to rely heavily

The consequences of education mismatch and skill mismatch

Skills Labour Mismatch

Patient prosthesis mismatch

Credit Risk Taking and Maturity Mismatch: the Role of the Yield … · Rome, 11-12 October 2018 . Credit Risk Taking and Maturity Mismatch: the Role of the Yield Curve. Giuseppe Ferrero,

Hybrid Mismatch Arrangements

SKILLS MISMATCH REPORT

SKILLS MISMATCH MEASUREMENT IN SERBIA - etf.europa.eu mismatch... · SKILLS MISMATCH MEASUREMENT IN SERBIA | 3 ACKNOWLEDGEMENTS This report was prepared for the European Training

Collective Moral Hazard, Maturity Mismatch and Systemic Bailouts

Educational Mismatch, Skill Mismatch and Job Satisfaction/file/2015_D3_1_Yi… · Educational Mismatch, Skill Mismatch and Job Satisfaction Lu Yin* Department of Economics, University

Thoughts on a New Financial Architecturemarkus/research/papers/new_financial_architecture.pdf · •Fire-sale Externality –too big to fail •Own maturity mismatch affects fire-sale

Collective Moral Hazard, Maturity Mismatch, and Systemic ...idei.fr/sites/default/files/medias/doc/by/tirole/collectivemh.pdf · Collective Moral Hazard, Maturity Mismatch, and Systemic

Uncertainty, Capital Flows, and Maturity Mismatch · ows data directly from central banks and capital market regulators. This allows me to construct a quarterly frequency measure

A Fast-Readout Mismatch-Insensitive Magnetoresistive ...bioee.ucsd.edu/papers/A Fast-Readout Mismatch-Insensitive...11.4: A Fast-Readout Mismatch-Insensitive Magnetoresistive Biosensor

Precautionary Mismatch

FOR MONEY MARKET MUTUAL FUNDS - Treasury Strategies · deposits/investments and loans. However, a maturity mismatch can be problematic when many investors want to withdraw funds over

A Multi-Factor Model for the Valuation and Risk Management ...users.skynet.be/sb168904/pdf/deposits.pdf · Banks create a mismatch between the maturity of their assets and liabilities