Anatomy of Risk Management Practices in the Mortgage Industry
@article{Rossi2010AnatomyOR, title={Anatomy of Risk Management Practices in the Mortgage Industry}, author={Clifford V Rossi}, journal={Capital Markets: Market Efficiency eJournal}, year={2010} }
No single factor was responsible for the significant expansion of credit and mortgage products during the period leading up to the mortgage crisis. However, there are indications that greater risk-taking could be attributed to the following factors: An over-reliance on performance metrics not adjusted for risk which would lead management toward riskier products; Data and analytical limitations and blind spots that led risk managers to grossly underestimate; Credit losses; Cognitive biases among…
6 Citations
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