Subprime Mortgage Tremors: An International Issue

Lander, Gerald H.; Barker, Katherine; Zabelina, Margarita; Williams, Tiffany S.

doi:10.1007/s11294-008-9177-4

Cited by 14 publications

(7 citation statements)

References 2 publications

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“…Research shows that many of these SPEs with potentially risky off-balance-sheet activities are left with low-performing assets (Lander et al, 2009). 4 The originator structures the transaction in accordance with FAS 140 to use off-balance-sheet sale treatments when transferring long-term receivables such as mortgages to SPEs (Johnson, 2007).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

Does Consolidation of Variable Interest Entities Improve the Pricing of Financial Reporting in Bank Holding Companies? Evidence From FAS 166/167

Hsu

Pourjalali

Ronen

2021

Journal of Accounting, Auditing & Finance

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The study examines whether consolidating qualified special-purpose entities (QSPEs) under Statement of Financial Accounting Standards Nos. 166 and 167 (FAS 166/167) improves the market reaction to earnings disclosures. We use a difference-in-difference design to compare the change sample, which is defined as banks that consolidate QSPEs after FAS 166/167, with the no-effect sample, which is defined as financial institutions with no QSPEs or banks that do not consolidate QSPEs after FAS 166/167. The results show that, during a short window around earnings announcements, the change sample experiences higher market reaction to earnings surprises than the no-effect sample after the implementation of FAS 166/167. We also find that the effect is more pronounced in banks that engage in securitization and in financial institutions whose securitized loans originate primarily from consumer loans rather than mortgages. Additional analysis also finds that adopting FAS 166/167 enhances the ability of earnings to predict future earnings and future cash flows in banks. The important implication of the study for regulators is that FAS 166/167 improves bank transparency.

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Section: Background and Literature Reviewmentioning

confidence: 99%

Does Consolidation of Variable Interest Entities Improve the Pricing of Financial Reporting in Bank Holding Companies? Evidence From FAS 166/167

Hsu

Pourjalali

Ronen

2021

Journal of Accounting, Auditing & Finance

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“…The contributing factors of the crisis: predatory lending, predatory borrowing and mortgage fraud, unethical practices, unregulated mortgage brokers, off-balance-sheet activity, and the infusion of capital from Asia that provided the fuel for subprime mortgage activity to continue [6].…”

Section: Modern Finance and A Lack Of Trustmentioning

confidence: 99%

Blockchain as a trust layer for more efficient finance market

et al. 2019

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This article covers a variety of topics on blockchain and the impact that digital encryption and social engineering will have on finance society. In modernized mortgage market, exchange would happen naturally, allowing users to benefit from a web of trust, where parties do not need to be in a direct relationship with each other to reap rewards from referrals that originate from multiple parties. Pseudonymity and honesty are properties that blockchains handle natively, and this is a candidate solution to the “transparency” problem in lending and borrowing, which acts as a trust inhibitor at scale for many interactions.

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“…In their first annual fraud estimate the NFA have estimated losses in the UK at £30 billion annually (NFA, 2010). With significant anti‐fraud campaigns such as, “We're Closing In” (DWP, 2008b), wide‐scale mortgage fraud in the USA contributing to the collapse of global financial markets (Lander et al , 2009) and international fraud causing losses to UK banks (BBC, 2008a), there is significant political and public interest in fraud.…”

Section: Introductionmentioning

confidence: 99%

Are local authority fraud teams fit for purpose?

Lane¹

2011

Journal of Financial Crime

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PurposeThe purpose of this paper is to analyse fraud investigative practice in London local authorities with reference to recognised best practice and two comparator organisations, the Department for Work and Pensions (DWP) and National Health Service (NHS).Design/methodology/approachPrimary research was undertaken through questionnaires to all London Boroughs and interviews with key personnel in two comparator organisations.FindingsEach London Borough has a specialist anti‐fraud response with professionally qualified investigators, demonstrates compliance with best practice and excels in areas such as case supervision and joint working. However, concerns remain, regarding a lack of agreed national standards and some failing to use the full range of investigative techniques, such as surveillance and computer forensic examination.Research limitations/implicationsThe research was limited to London local government and further work is needed outside the capital.Practical implicationsRecommendations are made for: the introduction of national professional guidance to investigators; minimum competency standards for fraud investigation; research into the applicability of the National Intelligence Model to high volume fraud; and a less fragmented approach both within and across local authorities.Originality/valueThere has been no previous research of this type and it may be useful to government when considering how to deal with fraud, local authorities and those with an interest in public sector fraud.

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Subprime Mortgage Tremors: An International Issue

Abstract: Subprime, Mortgage, Lending, F30, F39, G10, G15,

Cited by 14 publications

References 2 publications

Does Consolidation of Variable Interest Entities Improve the Pricing of Financial Reporting in Bank Holding Companies? Evidence From FAS 166/167

Does Consolidation of Variable Interest Entities Improve the Pricing of Financial Reporting in Bank Holding Companies? Evidence From FAS 166/167

Blockchain as a trust layer for more efficient finance market

Are local authority fraud teams fit for purpose?

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