(Credit risk and commercial banks) Fourth Second Bank is a l…

(Credit risk and commercial banks) Fourth Second Bank is a large regional bank headquartered Akron, Ohio. Its consumer lending operations use credit scoring to evaluate and monitor loans. After years of growing loans at the same rate as their peers, they revised their scoring model in 2023. Since then, their annual loan growth rate has been 8% versus 4% for their peers. Given this information, you think

(GSEs and mortgages) Before the Global Financial Crisis of 2…

(GSEs and mortgages) Before the Global Financial Crisis of 2007-2009, although many residential mortgages were securitized through the government sponsored enterprises (GSEs) such as FNMA, many others were securitized privately by investment banks such as Merrill Lynch. By contrast, today