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Research

  • Staff Working Papers

    Working Paper 03-3: Aggregation Bias and the Repeat Sales Price Index

    This paper examines whether any consistent bias can be found in the creation of a repeat sales price index at the state level. This is done by comparing a transaction-based index with a housing-stock-based index. The housing-stock-based index weights each observed repeat transaction by the amount of...

  • Staff Working Papers

    Working Paper 03-2: Drawing Inferences about Housing Supply Elasticity from House Price Responses to Income Shocks

    The purpose of this paper is to provide information about the price elasticity of the housing supply by examining the relationship between the average price of single-family housing and the amount of personal income. A two-equation vector error correction system is estimated using a panel data set...

  • Staff Working Papers

    Working Paper 03-1: Subprime and Prime Mortgages – Loss Distributions

    ​This paper links the probabilities of default and prepayments to the distribution of losses associated with a synthetic portfolio of Fannie Mae and Freddie Mac mortgages randomly samples from 30-year fixed rate prime and subprime mortgages. The simulations exploit historical relationships found...

  • Briefs, Notes & White Papers

    Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO

    Author: ​Robert S. Seiler, Manager of Policy Research ​The large and rapidly growing literature on financial crises, systemic risk, and the role of governments in mitigating that risk includes no detailed analyses of how Fannie Mae and Freddie Mac can affect systemic risk. This research paper...

  • Briefs, Notes & White Papers

    Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO

    I. Executive Summary Fannie Mae and Freddie Mac – the two government-sponsored enterprises (GSEs) chartered by the federal government to support the secondary market for residential mortgages – provide considerable benefits to the housing sector of the U.S. economy. The Enterprises support housing...

  • Briefs, Notes & White Papers

    Enhancing Disclosure in the Mortgage-Backed Securities Markets

    Author: Peter Nickoloff, Department of the Treasury ​Staff of the Department of the Treasury (“Treasury”), the Office of Federal Housing Enterprise Oversight (“OFHEO”), and the Securities and Exchange Commission (the “Commission”) formed a joint task force (“Task Force”) in August 2002 to conduct a...

  • Briefs, Notes & White Papers

    Mortgage Markets and the Enterprises in 2001

    Author: Valerie L. Smith, Senior Policy Analyst Forrest Pafenberg, Senior Policy Analyst Brian Doherty, Senior Policy Analyst ​This Office of Federal Housing Enterprise Oversight (OFHEO) paper reviews developments in the housing sector and the primary mortgage market, the secondary market activities...

  • Staff Working Papers

    Working Paper 02-2: Alternative Methods of Increasing the Precision of Weighted Repeat Sales House Prices Indices

    This paper discusses alternative methods of increasing the precision of weighted repeat sales house price indices. Evidence is found that adding the dimensions of price tiers and asymmetry to the variance estimate has merit and does affect the estimated index as well as homeowner equity estimates...

  • Staff Working Papers

    Working Paper 02-1: Patterns of Default and Prepayment for Prime and Nonprime Mortgages

    Using data from Fannie Mae and Freddie Mac, this paper estimates a competing risks proportional hazard model popularized by McCall (1996). The analysis examines the performance 30-year fixed rate mortgages from February 1995 to the end of 1999 and compares nonprime and prime loan default and...

  • Briefs, Notes & White Papers

    Mortgage Markets and the Enterprises in 2000

    Author: Valerie L. Smith, Senior Policy Analyst ​This Office of Federal Housing Enterprise Oversight (OFHEO) paper surveys developments in the housing sector and the primary mortgage market, the secondary market activities of Fannie Mae and Freddie Mac, and the financial performance of the...