CreditSlips

Size Matters: Community Banks' Real Problem

02/10/15

Community banks are ailing.  Over the past decade many of them have failed or been gobbled up by larger banks. What's going on? 

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Sh*t In, Sh*t Out? the Problem of Mortgage Data Corruption & Empirical Analysis

02/09/15

Empirical economic analysis is a powerful tool.  It can elucidate correlations and sometimes even get us to causual explanations. But it has a serious weak-spot:  its value is entirely dependent upon the integrity of the data analyzed. To put the problem succinctly: sh*t in, sh*t out. 

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Puerto Rico – Recovery Delayed?

02/08/15

As Melissa has noted, the district court has ruled that Puerto Rico's Recovery Act is preempted by the Bankruptcy Code, among other things. I want to amplify one point that she made in her post.

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Thank You to Michelle Harner

02/02/15

Credit Slips thanks Michelle Harner for guest blogging. She shared her own personal views about reforms for chapter 11. Although Harner was here in her personal capacity and speaking only for herself, her role as the reporter for the American Bankruptcy Institute's Commission to Study the Reform of Chapter 11 gives her a valuable and informed perspective on the issues. Thank you, Michelle.

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The Disappearance of HOEPA Loans

02/02/15

While I'm on the subject of dead markets, what about HOEPA loans?  HOEPA loans are super-high-cost loans that qualify for special consumer protections under the Home Owners Equity Protection Act of 1998. (Yes, that's the one that directed that the Fed "shall" implement a rule on abusive lending, which the Fed understood to be discretionary until 2008.)  

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Just How Dead Is the Private-Label MBS Market?

02/02/15

Pretty darn dead.  In 2014, there were all of 22 private-label RMBS deals.  These deals provided $5.67 billion in financing for 7,342 mortgages.  Let that sink in for a second.  The private-label market financed fewer home mortgages than were made in the District of Columbia last year.  

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Random Thoughts on Reform

01/30/15

I just finished discussing the “random walk” theory in my Corporate Finance class, so I thought I would close out my stint on Credit Slips with some “random thoughts” on reform.

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