IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v7y1993i1p79-90.html
   My bibliography  Save this article

State Public Lending Practice and Industrial Real Estate Mortgage Default: The New York Experience

Author

Listed:
  • Robert A. Simons

    (Cleveland State University)

Abstract

This study assesses the relationship between selected public lender practices, real estate net equity, and industrial mortgage loan default. Seven lending practices and three advance indicators of default are tested on a matched-pair data set drawn from the second-mortgage portfolio of the New York State Job Development Authority (NYJDA). Results show that bankruptcy and negative net equity are strongly associated with default among the study population. No relationship is found between the strength of original loan guarantees or the lending subsidy and default. Also, negative net equity, liens, and late junior mortgages are useful predictors of default 1 year prior to the event. The NYJDA and similar public lenders should consider systematic monitoring of net equity, liens, late junior mortgages, and current financial statements of loan guarantors.

Suggested Citation

  • Robert A. Simons, 1993. "State Public Lending Practice and Industrial Real Estate Mortgage Default: The New York Experience," Economic Development Quarterly, , vol. 7(1), pages 79-90, February.
    • Handle: RePEc:sae:ecdequ:v:7:y:1993:i:1:p:79-90
    DOI: 10.1177/089124249300700107
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/089124249300700107
    Download Restriction: no
    File URL: https://libkey.io/10.1177/089124249300700107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:7:y:1993:i:1:p:79-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.