Fed Mortgage Lending Survey Deemed Flawed

first_img Share Fed Mortgage Lending Survey Deemed Flawed American Enterprise Institute Federal Reserve International Center on Housing Risk Senior Loan Officer Opinion Survey on Bank Lending Practices 2015-11-05 Staff Writer November 5, 2015 530 Views center_img Earlier this week, the Federal Reserve  released their Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS), which found that banks lowered mortgage lending standards in the third quarter of 2015. However, new housing risk research shows that the survey is “flawed.”The survey, which includes responses from 69 domestic banks and 23 U.S. branches and agencies of foreign banks, found that household lending from banks have loosened their credit standards over the past three months on loans eligible for purchase by the GSEs and on qualified mortgage (QM) loans.”The SLOOS shows that mortgage lending standards have loosened on net over the past year. This is the right signal, but the SLOOS arrives there by accident, rather than by design,” said Tobias Peter, housing risk researcher at the American Enterprise Institute’s (AEI) International Center on Housing Risk.The survey is monitored closely by the mortgage industry as a key indicator for lending trends and changes reported directly from banks. But despite its huge following, Peter believes the survey is flawed and has identified a few discrepancies within it.”Unfortunately, the information provided by the survey has always been limited at best, and useless at worst,” Peter explained. “Limited because it only reports results based on about 60 loan officers. But even if these were representative for the fifty percent of mortgage lending originated by banks, it ignores the other half, consisting largely of much riskier originations by nonbanks. And useless because it showed no systematic loosening in mortgage lending standards in the run-up to the 2007/2008 financial crisis, which runs contrary to everything we now know.”In his research he points out that the Fed survey is not based on hard data (i.e. loan records), instead, it is based on the opinion of the 60 participating loan officers from commercial banks.In addition, Peter mentioned that the Fed survey weighs all responses equally, rather than by their share of actual originations.The survey also does not distinguish between loans with a government guarantee originated by all lenders, loans used to buy primary owner-occupied homes, second home purchases, or investor purchases.”While the SLOOS can shed some light on mortgages without a government guarantee, which are not currently covered by the NMRI, the same flaws apply,” Peter concluded. “Instead of basing evaluation of lending standards on a small survey of bankers that will send the correct signal only by accident or even worse, the wrong signal, policymakers and the public should direct their attention to an index grounded in facts, not opinions.”Click here to read the complete report. in Daily Dose, Data, Featured, Government, Market Studies, News, Originationlast_img read more

Tampa Bay Buccaneers wide receiver DeSean Jackson

first_imgTampa Bay Buccaneers wide receiver DeSean Jackson (11) makes a touchdown catch in front of Arizona Cardinals cornerback Justin Bethel (28) during the second half of an NFL football game Sunday, Oct. 15, 2017, in Glendale, Ariz. The Cardinals defeated the Buccaneers 38-33. (AP Photo/Rick Scuteri) ErrorOK ErrorOKTo partly explain the Cardinals’ defensive lapses, PFF pointed to the loss of a key veteran contributor this past offseason and an unbalanced secondary.No Calais Campbell has left a significant hole in this Cardinals defense that they have yet to adequately patch. Frostee Rucker leads the defensive linemen in snaps, and has been extremely ineffective. On the back end, as good as Patrick Peterson is, the other starter is Justin Bethel, and the disparity in talent means Bethel has seen more than twice the number of passes come his way than Peterson, and has already surrendered six touchdowns.Campbell was a force on the defensive line during his time in Arizona. Last season, he registered eight sacks in 16 games.Without Campbell, the Cardinals have 12 sacks as a team, tied for the ninth-fewest in the league. Meanwhile, Campbell has already matched his sack total from last season in his first season with the Jacksonville Jaguars and his team leads the league with 23 sacks.In the secondary, Justin Bethel impressed during the preseason. But, he could be replaced in the starting lineup by Tramon Williams. The Cardinals have given up 13 receiving touchdowns, tied for the second most in the league with the Titans. Top Stories Derrick Hall satisfied with D-backs’ buying and selling Former Cardinals kicker Phil Dawson retires 1 Comments   Share   The 5: Takeaways from the Coyotes’ introduction of Alex Meruelo The Arizona Cardinals’ defense surrendered 27 points in the fourth quarter against the Tampa Bay Buccaneers, and Pro Football Focus ranked coordinator James Bettcher’s unit No. 20 out of 32 teams in the NFL.After star running back David Johnson dislocated his wrist in Week 1, an injury that will keep him out until at least Christmas, some thought the defense would have to win games for Arizona.But through six weeks in 2017, only the Indianapolis Colts (32.5), the Tennessee Titans (27.3), the New England Patriots (26.5) and the Dallas Cowboys (26.4) have given up more points per game. The Cowboys have played five games and the other two teams have played six. Grace expects Greinke trade to have emotional impactlast_img read more