| Title |
Date |
Publication |
Author(s) |
Type |
| Ten Myths about Subprime Mortgages
|
July, 2009 |
|
Yuliya Demyanyk; |
Economic Commentary |
| Abstract: On close inspection many of the most popular explanations for the subprime crisis turn out to be myths. Empirical research shows that the causes of the subprime mortgage crisis and its magnitude were more complicated than mortgage interest rate resets, declining underwriting standards, or declining home values. Nor were its causes unlike other crises of the past. The subprime crisis was building for years before showing any signs and was fed by lending, securitization, leveraging, and housing booms.
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| Financial Crises and Bank Failures: A Review of Prediction Methods
|
May, 2009 |
Federal Reserve Bank of Cleveland, Working Paper no. 09-04 |
Yuliya Demyanyk; Iftekhar Hasan; |
Working Papers |
| Abstract: In this article we provide a summary of empirical results obtained in several economics and operations research papers that attempt to explain, predict, or suggest remedies for financial crises or banking defaults; we also outline the methodologies used in them. We analyze financial and economic circumstances associated with the U.S. subprime mortgage crisis and the global financial turmoil that has led to severe crises in many countries. The intent of this article is to promote future empirical research for preventing bank failures and financial crises.
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| Did Credit Scores Predict the Subprime Crisis?
|
October, 2008 |
Federal Reserve Bank of St. Louis, The Regional Economist, pp. 12-13 |
Yuliya Demyanyk; |
Other FRB Publications |
| Abstract: A credit score measures the creditworthiness of individuals or businesses. Given the nature of FICO scores, one might expect to find a relationship between borrowers’ scores and the incidence of default and foreclosure during the ongoing subprime mortgage crisis. The analysis of this paper suggests, however, that FICO scores have not indicated that relationship: Default rates have risen for all categories of FICO scores and, moreover, higher FICO scores have been associated with bigger increases in default rates over time.
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| Eighth District States Weather the Mortgage Foreclosure Storm
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October, 2008 |
Federal Reserve Bank of St. Louis, The Regional Economist, pp. 18-19 |
Yuliya Demyanyk; Michael Pakko; |
Other FRB Publications |
| Abstract: One of the symptoms of the ongoing problems in the nation’s housing markets is a sharp rise in mortgage delinquencies and home foreclosures. This article summarizes and analyzes the delinquency and foreclosure data for the states of the Eight Federal District for prime and subprime mortgages.
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| Subprime Crisis: Is there a Way Out?
|
March, 2008 |
Central Banker, Spring 2008 |
Yuliya Demyanyk; |
Other FRB Publications |
| Abstract: This article outlines potential solutions for the subprime mortgage crisis in the United States along with their benefits and costs.
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| Banking deregulation helps small business owners stabilize their income
|
April, 2007 |
Federal Reserve Bank of St. Louis, The Regional Economist, pp. 10-11 |
Yuliya Demyanyk; Charlotte Ostergaard; Bent Sorensen; |
Other FRB Publications |
| Abstract: Once banking markets were opened up to geographic diversity and competition, more banks were in a better position to lend money to small businesses-even in tough times.
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| Subprime ARMs: Popular Loans, Poor Performance
|
March, 2007 |
Bridges, Spring 2007 |
Yuliya Demyanyk; Yadav Gopalan; |
Other FRB Publications |
| Abstract: In recent decades, the expansion in credit availability has been a driving factor in American economic growth. Since the 1990s, customers have had greater access to credit to finance purchases, most notably home buying, thereby contributing to the booming real estate market. Although these consumers have had an avenue to finance their homes, the types of loans available to them have come under particular scrutiny.
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| Income Inequality: Time for Predatory Lending Laws?
|
October, 2006 |
Federal Reserve Bank of St. Louis, The Regional Economist, pp. 10-11. Reprinted in the Mortgage Press, April 2007 |
Yuliya Demyanyk; |
Other FRB Publications |
| Abstract: Income inequality, the gap between the rich and the poor, seems to indicate a higher probability of a predatory lending law being adopted. States that recently adopted predatory lending laws had higher than average levels of income inequality over the past 10 years than their nonadopting counterparts.
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| U.S. Banking Deregulation and Self-Employment: Discrimination and Inequality
|
January, 2006 |
Federal Reserve Bank of St. Louis, Supervisory Policy Analysis WP 2006-03 |
Yuliya Demyanyk; |
Working Paper, Other |
| Abstract: Starting in 1978, the U.S. banking sector was gradually deregulated in terms of restrictions on geographical expansion. This paper examines the impact of intrastate branching deregulation on (state-specific) self-employment income growth rate. If postreform changes in the banking structure led to improved lending to previously underserved (potential) businessmen, their self-employment income would accelerate, as banks are the prime source of finance for self-employment. Based on a simple model adopted from Evans and Jovanovic (1989), it is hypothesized that banking deregulation would particularly impact self-employment of discriminated against social groups.
Consistent with the hypothesis, cross-state evidence suggests that the growth rate of self-employment income increased after reform, with the effect being more pronounced for women and non-white minorities at the low end of income distribution. Based on the obtained results, this paper suggests that more competitive banking environment after branching reform has mitigated prejudicial discrimination in lending. The analysis casts light on real effects of banking deregulation, on the effect of consolidation in the banking sector on individuals targeted by the Equal Credit Opportunity (ECOA) and the Community Reinvestment Act (CRA), and on a function of competition in reducing discrimination.
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