The Effect of GSEs, CRA, and Institutional Characteristics on Home Mortgage Lending to Underserved Markets HUD Final Report

The Effects of the GSEs, CRA, and Institutional Characteristics on Home Mortgage Lending to Underserved Markets

This study longitudinally compares the characteristics of loans made or bought by different institutions to see which types of lenders lead the mortgage finance industry in making credit available for lowand moderate-income families and which are merely following behind. Hypotheses are tested via a case study analysis of conventional home mortgage lending in Indiana for 1992–96. Results show th...

GSEs, the CRA and Home Mortgage Lending to Underserved Markets in Indiana, 1992-1996

The Impact of Secondary Mortgage Market and GSE Purchases on Underserved Neighborhood Housing Markets: A Cleveland Case Study

Since 1992 the federal government has established regulations encouraging the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac to purchase home mortgages originated in neighborhoods traditionally underserved by financial institutions, with the aim of stimulating housing market activity there. This research tests this proposition empirically, based on an econometric analysis of...

Secondary Mortgage Markets, GSEs, and the Changing Cyclicality of Mortgage Flows

In recessions, depository institutions accounted for most declines in mortgage flows. Recently, they partially offset their withdrawals from primary markets with accumulations of mortgage-backed securities. Increases in direct flows into agency and private pools also countered the declining flows elsewhere. As the less-procyclical secondary mortgage markets grew and matured, they increasingly s...

The Twenty-Fifth Anniversary of the Community Reinvestment Act: Past Accomplishments and Future Regulatory Challenges

he U.S. Congress passed the Community Reinvestment Act (CRA) in 1977 to encourage depository institutions to meet the credit needs of lower income neighborhoods. The CRA was built on the simple proposition that deposit-taking banking organizations have a special obligation to serve the credit needs of the communities in which they maintain branches. At the time of the CRA’s passage, banks and t...