Automated Underwriting and the Profitability of Mortgage Securitization

This paper develops a game-theoretic model of mortgage securitization, which is then used to examine a potential effect of automated underwriting. The paper's primary supposition is that automated underwriting lowers the costs to competitive mortgage originators and a monopolist securitizer of identifying mortgage applicants who are good credit risks. Faced with lower underwriting costs, originators will screen a larger number of mortgage applicants in the hopes of holding more good risks in their portfolios and passing through more bad risks to the securitizer. This mounting adverse-selection problem causes the securitizer's expected revenues to decline; this effect can outweigh the cost-saving benefit of automated underwriting, causing the securitizer's return on equity to fall.     

Customer's angry voice: Targeting employees or the organization?

Poor service encounters have the potential to leave customers feeling angry at the frontline service employee who serves them, angry at the organization, or angry at both parties. The 25 in-depth interviews (Study 1) and experimental work (Study 2) demonstrate how distributive (outcome fairness), procedural (response time) and interactional (treatment received) justice dimensions differentially affect where the customer targets her or his anger, either at the frontline employee or at the organization as a whole. Further investigation reveals sins-of-omission (when the service provider failed to act) and interactional justice mediate the effect of response time on anger at the employee. Interactional justice also partially mediates the effect of outcome fairness on anger at the organization whereas sins-of-omission do not.     

Statement no.75 protecting taxpayers from risks of government-sponsored enterprises

Statement no.75 protecting taxpayers from risks of government-sponsored enterprisesSeptember 16, 1991     

Cooling off and backing out: Understanding consumer decisions to rescind a product purchase

Consumers sometimes have the right to exit a sales contract during what is known as a cooling-off period. Sales process research generally does not address cases when consumers withdraw from sales contracts during this period. Since securing product sales involves substantial marketing and sales costs, a need exists to better understand not only consumer rescission decisions and their legal context but also the managerial implications of the cooling-off period. This exploratory qualitative study examines purchase rescinding and develops a conceptual model using timeshare as the context. Results suggest that rescission relates to a mismatch between product features and personal circumstances, post-purchase concerns about product value, reassessment of financial capability, reflections on sales presentations, and cautionary influences of reference groups.     

Predictors, consequence, and measurement of ethical judgments: Review and meta-analysis

As a central construct in theories of ethical decision making, ethical judgments have been the subject of more than one hundred empirical studies. Despite its size, the ethical judgments literature seems to lack clarity in three areas. First, empirical results are sometimes inconsistent or contradictory across studies. Second, a broad array of diverse measures of ethical judgments raises concerns about research validity. Third, differences in sample composition may affect comparability of study results. To help resolve these issues, this study conducts a review and meta-analysis of the ethical judgments literature. The results offer insights in all three areas. They help resolve some of the inconsistencies in the relationships between ethical judgments and certain theoretical antecedents; they support the use of diverse measures of ethical judgments; and they offer caution in the use of student samples in ethical judgments research.     

Multivariate Process Monitoring Using the Dynamic Biplot

In this article, we present a method for monitoring multivariate process data based on the Gabriel biplot. In contrast to existing methods that are based on some form of dimension reduction, we use reduction to two dimensions for displaying the state of the process but all the data for determining whether it is in a state of statistical control. This approach allows us to detect changes in location, variation, and correlational structure accurately yet display a large amount of information concisely. We illustrate the use of the biplot on an example of industrial data and also discuss some of the issues related to a practical implementation of the method.     

Recognition-Based Measures of Ethical Sensitivity and Reformulated Cognitive Moral Development: An Examination and Evidence of Nomological Validity

Because most prominent theories of ethical decisionmaking posit that the process begins with anindividual's recognition of the ethical issuesinherent in a decision situation, and is followed bysome degree of individual cognitive processing, theconstructs ethical sensitivity and cognitive moraldevelopment assume great importance in the study ofbusiness ethics. Two recent developments in theethics literature suggest that these two constructswarrant additional examination. First, is the use ofrecognition-based measures of ethical sensitivity;second is the development of a new index for theprincipal measure of cognitive moral development, theDefining Issues Test. In this paper, the authorsexamine issues of nomological validity related tothese two constructs in light of these recentdevelopments. Results of an empirical study showstrong support for the new index of cognitive moraldevelopment, but likely because of samplecharacteristics, support for the ethical sensitivitymeasure is inconclusive.     

Natural and Built Photographic Images: Preference,Complexity, and Recall

An investigation of the effect of natural versus built images of tourism activities on consumer responses was undertaken, using a selection of tourism promotion photographs. A sample of 156 males and 175 females provided ratings for images including: preference (liking), degree of complexity, consumption vision, and recall. The research provides evidence for consumer preference for natural versus built images, shows the role of complexity as an association to image type, and demonstrates that areas of interest most liked within an image are different by gender. Tourism activity images that are predominantly natural are more likely to be recalled. This study contributes to the application of a new method using areas of interest to pinpoint elements of images that are most interesting.