Mortgagors face a trade off between paying more points and a lower interest rate. The theoretical prediction is that borrowers with a higher probability of prepayment would opt for a loan with fewer points and higher interest rate. Another theoretical prediction is that once incurred, points become sunk costs, hence should not affect borrowers’ refinancing decisions in the future. Utilizing ind...

With the prosperity and development of asset management industry various financial derivatives, many micro-loans online loans have gradually entered public view. How to predict default probability customer is a hot topic in market. Therefore, this paper, by collecting data profile more than 10 thousand car loan borrowers fitting fusion model 4 methods: logistic model, decision Random Forest, KN...

We use an information-theoretic approach to describe changes in lending relationships between financial institutions around the time of the Lehman Brothers failure. Unlike previous work that conducts maximum likelihood estimation on undirected networks our analysis distinguishes between borrowers and lenders and looks for broader lending relationships (multi-bank lending cycles) that extend bey...

This paper explores empirical linkages between credit unions’ (CUs’) policies and their financial perfomance, as measured by loan delinquency and profitability, using a unique micro dataset of credit unions in three Latin American countries. The estimated translog profit function is generalized using a slack variable concept that parameterizes any systematic deviation from profitmaximizing beha...

A theory of money needs a proper place for financial intermediaries. Intermediaries diversify risks and create inside money. In downturns, micro-prudent intermediaries shrink their lending activity, fire-sell assets and supply less inside money, exactly when money demand rises. The resulting Fisher disinflation hurts intermediaries and other borrowers. Shocks are amplified, volatility spikes an...

It has been widely reported that the subprime mortgage crisis has disproportionately hit communities of color. Academic research, media reports, and commentary from HUD Secretary Shaun Donovan all highlight the disproportionate impact that subprime lending has had on both black and Hispanic borrowers and the neighborhoods in which they live. The Furman Center’s analysis of nationwide mortgage l...

Background: We examine the signaling effect of borrowers’ social media behavior, especially self-disclosure behavior, on the default probability of money borrowers on a peer-to-peer (P2P) lending site. Method: We use a unique dataset that combines loan data from a large P2P lending site with the borrower’s social media presence data from a popular social media site. Results: Through a natural e...

Abstract Crowdfunded microloans are a suitable tool for financing basic economic activities in developing as well developed countries, favouring female empowerment. Despite the loans being relatively small, widespread use of this instrument merits analyzing factors affecting microloan. One these is gender because an important to finance projects promoted by women many countries where microfinan...