Mathematics & Statistics Calendar
The Housing Bubble and the Financial Crisis, a Lecture by Wisam Yaghi (Updated 11/1/13)
2:50 pm – 5:00 pm, Tuesday, November 5 (2013), Gray Hall, Bentley Meeting Room
Prior to the recession that began in December of 2007, more people recognized the Fannie May, a brand of chocolates owned by 1-800-Flowers people, than Fannie Mae or Freddie Mac, the Government Sponsored Enterprises (GSE) in the home mortgage business. Freddie Mac, one of the nation's largest buyer's of home mortgages, is a stockholder-owned corporation chartered by Congress in 1970 to provide liquidity, stability and affordability to the nation's housing and rental markets. It became popular when the economy entered into a great recession. The primary cause of the recession was the credit crisis resulting from the bursting of the housing bubble. This review discusses the four primary causes of the housing bubble and the role of Freddie Mac to address the foreclosure crisis. It describes briefly how survival methods were used to explain how loan, borrower, property, servicer and neighborhood characteristics, along with differences in the modifications, affect the likelihood of redefault. The Kaplan-Meier methods and Cox's proportional hazards model are described.
- Mathematics & Statistics
Dr. Stephen Casey