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Fed Study on GSE'S encouraging default....

Started by Riversider
over 16 years ago
Posts: 13573
Member since: Apr 2009
Discussion about
http://brucekrasting.blogspot.com/2009/11/richmond-fed-on-gses-they-encourage.html "We cannot reject the hypothesis that recourse does not have an effect on Loans held by the Government Sponsored Enterprises.” "Recourse does not have a significant impact on the probability of default for mortgages held by a GSE.” “The probability of default by foreclosure increases by 7% for mortgages held by a GSE as compared to the mortgages held by private lenders.”
Response by Riversider
over 16 years ago
Posts: 13573
Member since: Apr 2009

http://www.richmondfed.org/publications/research/working_papers/2009/pdf/wp09-10.pdf

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Response by Riversider
over 16 years ago
Posts: 13573
Member since: Apr 2009

Intresting take on Targeted Lending by Gov't being a failure...

http://brucekrasting.blogspot.com/2009/10/edward-demarco-boss-at-fhfa-made.html

and look at the graph. how it starts out small and just takes over..

http://4.bp.blogspot.com/_5JJarCb6DPo/StZyQlFlAAI/AAAAAAAAAlU/jS2edfN9qs4/s1600-h/fhagraph.png

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Response by Riversider
over 16 years ago
Posts: 13573
Member since: Apr 2009

I could not understand until now, why Florida which has deficiency judgments had default rates as high as California. It seemed to fly in the face of strategic defaults. The answer was that Florida is Home Stead exemptions which effectively protect personal assets and give the home owner an incentive to walk.....

http://ronwebster.com/content/florida-homestead-exemption

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