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Table of Contents
Wiley & SAS Business Series
Title Page
Copyright Page
Dedication
Preface
ORGANIZATION OF THE BOOK
AUDIENCE FOR THE BOOK
CHAPTER 1 - Unpacking the Financial Crisis
THE FINANCIAL CRISIS
CAUSES OF THE CRISIS
ROLES OF BORROWERS, LENDERS, AND INVESTORS
ROOT CAUSES
KEY DRIVERS OF THE CRISIS
THE IMPACT
THE CONSEQUENCES
THE IMPLICATIONS
SUMMARY
CHAPTER 2 - The Case for a Comprehensive Credit Assessment Framework
THE NEED FOR A NEW LENDING SYSTEM
HISTORICAL REVIEW
NEW LENDING SYSTEM
OVERVIEW OF THE FRAMEWORK
HOW CCAF CLASSIFIES BORROWERS
CCAF AND EXISTING UNDERWRITING MODELS
EXAMPLE
SUMMARY
CHAPTER 3 - The Lender and the Underwriting Gap
MORTGAGE UNDERWRITING PROCESS BASICS
THE UNDERWRITING GAP AND ITS KEY COMPONENTS
HOW TO CLOSE THE UNDERWRITING GAP
SUMMARY
CHAPTER 4 - The Borrower and Loan Affordability
LOAN AFFORDABILITY
SUBPRIME LENDING AND LOAN AFFORDABILITY
SUBPRIME LOAN PERFORMANCE
CREDIT SCORING SYSTEMS AND LOAN AFFORDABILITY
HOW CCAF QUALIFIES THE BORROWERS
EXAMPLES: CCAF QUALIFIES LOAN AFFORDABILITY FOR BORROWERS
SUMMARY
CHAPTER 5 - The Investor and Financial Innovation
MORTGAGE BANKING BUSINESS VALUE CHAIN
LOAN SECURITIZATION AND THE FINANCIAL CRISIS
THE ROLE OF INVESTMENT VEHICLES
ROLE OF CREDIT RATING AGENCIES
HOW CCAF CAN HELP IMPROVE THE RATING PROCESS
HOW CCAF TRACKS THE UNDERLYING LOAN PERFORMANCE
FUTURE OF FINANCIAL INNOVATION
SUMMARY
CHAPTER 6 - Crisis Intervention and Prevention
LENDING-RELATED REGULATIONS
CRISIS INTERVENTION
NEW FRAMEWORK
CRISIS PREVENTION
LOOKING AHEAD
SUMMARY
CLOSING OBSERVATION