COVID-19 exposes mortgage market vulnerabilities that led to volatility, Fed intervention
The COVID-19-induced financial market shock in March 2020 significantly disrupted the market for agency mortgage-backed securities.
February 02, 2021
Does homeownership provide an escape from high rent burdens?
Many first-time homebuyers—often with little savings and vulnerable to economic shocks—obtain their mortgages through the Federal Housing Administration (FHA) loan program. Often, these borrowers are moving from apartments and have presumably weighed the costs of renting versus owning.
January 05, 2021
Highly indebted FHA borrowers at special risk as COVID-19 forbearance ends
The situation appears most urgent for those borrowers who entered the crisis with a high debt load and little room to financially navigate without forbearance.
September 29, 2020
Southwest Economy, Second Quarter 2020
COVID-19, oil price collapse dimming outlook for banks in 2020
Eleventh District banks face challenges from instability in the energy sector and economic fallout from the COVID-19 pandemic.
June 23, 2020
CARES Act likely to blunt mortgage delinquency rate increase
Household survey data and recent unemployment forecasts provide a basis for estimating the share of mortgage borrowers that—absent the CARES Act—would have missed a mortgage payment due to the economic shutdown.
May 26, 2020
How falling oil prices in early 2020 weakened the U.S. economy
The benchmark West Texas Intermediate (WTI) price of oil dropped by more than half from Jan. 21 to April 3. This oil price decline has weakened rather than strengthened the U.S. economy, making this event different from past episodes of falling oil prices.
May 19, 2020
Ability to repay a mortgage: Assessing the relationship between default, debt-to-income
The Consumer Financial Protection Bureau has announced that it intends to change the definition of a “qualified mortgage.” Specifically, the CFPB proposes to reconsider the use of a borrower's debt-to-income ratio as a measure of the ability to repay a loan.
March 24, 2020
The long road to housing finance reform: 'Are we there yet?'
Over the past decade, broad-based legislative reforms for housing finance have proven elusive. However, reflecting lessons from the financial crisis, a political consensus has emerged on how Fannie Mae and Freddie Mac should operate.
February 04, 2020
After the bust, the long road to housing finance reform
The Treasury recently released a plan proposing several administrative and legislative changes aimed at returning Fannie Mae and Freddie Mac to the private sector after more than a decade of federal control.
January 14, 2020
Southwest Economy, Fourth Quarter 2019
Spotlight: Banks Face Growing Cybercrime Threat
Cybercrime is on the rise in the Eleventh District according to FBI data.
December 30, 2019