Do securitized loans differ from loans held on lenders’ balance sheets? If so, why? We assemble a unique dataset of commercial mortgages with information on loan characteristics at origination and subsequent performance. The most significant difference between securitized (CMBS) and balance sheet loans is the loan size. The largest loans are 42 percentage points more likely to be securitized th...

Using a national survey data where the event of individual households being refused loans (credit rationed) by financial institutions -as well as the specific loans for which they were turned down -is observed directly, this study investigates both the role of relationships on credit rationing in the nineties and the differential role of relationships across credit rationing in various consumer...

This paper models the price and income elasticity of retail finance in Australia using aggregate quarterly data and an autoregressive distributed lag (ARDL) approach. We particularly focus on the impact of the global financial crisis (GFC) from 2007 onwards on retail finance demand and analyse four submarkets (period analysed in brackets): owneroccupied housing loans (Sep 1985–June 2010), term ...

We model aggregate delinquency behaviour for consumer credit (including credit card loans and other consumer loans) and for residential real estate loans using data up until 2008. We test for cointegrating relationships and then estimate short run error correction models.We find evidence to support the portfolio explanations of declines in credit quality for consumer and for real estate loans, ...

This paper examines the impact of government guaranteed small business loans on economic growth, and whether government guaranteed loans crowd out new businesses financed through the market. OLS estimates indicate a significant and positive relation between the Small Business Administration’s (SBA) guaranteed loans and metropolitan growth between 1993 and 2002. However, endogeneity hinders caus...

in the history of islam, until the last century, shiah and sunni scholars haven’t distinguished between consumption and production loans and riba in islam absolutely has been forbidden. with the development of capitalism and its influence in muslim countries, many businessmen, industrialists and bankers were faced with the problem of usury . to solve this problem, a group of theologists proposa...

In the second half, econometric analysis (regression testing) is used to isolate the key factors affecting HAMP modification performance and to compare the performance of loans modified through HAMP with other similarly delinquent loans. The innovation in this study comes from the merging of HAMP program data with a commercial loan performance database, which allows HAMP-modified loans to be co...

*the views expressed here are those of the author and do not necessarily represent the views of the Federal reserve bank of Philadelphia or the Federal reserve system. you’ve probably heard of reverse mortgage loans. but even though these loans have been getting more attention in the media and in academia, it’s possible that you’re still not sure about what reverse mortgages really are.1 ost pe...

I compare welfare generated by a credit contract with individual liability and a contract with joint liability. The problem is credit rationing caused by limited liability and unobservable investment decisions. Joint liability induces borrowers to monitor each other, however the lender can also monitor. I show that wealthier borrowers may prefer riskier investments when liability is joint, whic...