« Once more unto the breach, dear friends, once more | Main | A Note on Senior Debt »

Fed Conference on Consumer Credit

posted by Katie Porter

The Federal Reserve Bank of Philadelphia is hosting its biennial researh conference, Recent Developments in Consumer Credit and Payments. The seven selected papers represent hot topics in economic research on consumer credit. Two papers focus on mortgage issues, including a paper by Tomasz Piskorski on the effects of securitization on distressed loan renegotiation. This has been a hotly contested topic, both on Credit Slips and in policy circles. The New York Times had a front-page story today on the incentives of servicers to modify loans, touching upon studies that examine how and whether securitization may limit modifications. Other papers deal with payday borrowing, bankruptcy reform, and retail lending. The full agenda is here.

The conference will be held Sept. 24-25 in Philadelphia. Registration information is available from the first link above.


Mortgage modifications, while well intended, just "ain't going to work". Those that have, are back into a large default rate again but not as high by comparison to past chapter 13 completion rates of about 30%. If consumers lack the ability to repay, no modification is going to work.

I believe that Mortgage Mods with a cramdown option in bankruptcy would work. Outside of bankruptcy cutting the junk fees charged by Servicers would help a great deal. So, when the we all get back onto our collective feet, what are we to do with all of the inventory of homes? What are consumers to do who had their credit reports trashed due to no fault of their own. ie. layoffs, Illness, sky ass high med insurance and co-pays etc...???

Who is going to be worthy enough to lend to? How long will it take for those now unworthy consumers to rehabilitate their credit being underneath a mountain of debt and dealing with a backward ass bankruptcy system? FIX the Bankrupcy "FIX"! With student loans the way they are, the potential consumers coming out of college are not going to be able to do it. We are going to need a bigger pool of consumers and the only way to get them up and running is by fixing Bankruptcy!

The comments to this entry are closed.


Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.



  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.