Cliff Rossi

Cliff Rossi

Dr. Cliff Rossi is senior vice president, chief economist, at Radian Group Inc. In this position, Rossi is responsible for research, forecasts and quantitative analysis and [financial] modeling of Radian’s mortgage insurance portfolio and the housing and mortgage markets.

ARTICLES

From HW Magazine

A holistic approach to gauging housing market performance

Examining deviations from the trend
Armed with an overall measure of housing market performance relative to long-term trend; an accompanying metric explaining whether that market is overheated or not; and importantly a way to attribute deviations in home prices precisely to selected market variables, market participants would be in a better position to take precautionary actions to limit their exposure in highly volatile markets.
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From HW Magazine

Introducing credit risk-sharing to FHA loans

Addressing the split personality of credit risk-sharing in the mortgage market
The FHA finds itself in a delicate position of balancing public policy interests against actuarial soundness of its $1 trillion plus Mutual Mortgage Insurance Fund. These twin policy goals at times run counter to each other, occasionally spilling over into the conventional-conforming market via FHA premium changes that create market distortions and adverse selection problems for the FHA.
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From HW Magazine

Fed rate hikes: No need for consumers to worry

Borrowers should be looking at other factors, not interest rate hikes
Factors that affect the yield on 10-year Treasuries will over time be reflected in mortgage rates. Two of these are inflation and economic conditions. We have enjoyed a low inflation environment for a number of years but if we had a bout of higher inflation it would lead to higher rates as investors in bonds require additional compensation for a loss in buying power.
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From HW Magazine

What's driving mortgage lending behavior?

Mortgage data suggests compliance costs and repurchase risk play a part
That lenders may be holding back a bit is not surprising as lessons from behavioral finance studies suggest that individuals tend to weight recent experience more than the past. Applied to the mortgage business and compounded by rising compliance costs, recent experience with heavy credit losses of the crisis could be dampening management enthusiasm for credit expansion in an otherwise expanding, albeit tepid economy.
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From HW Magazine

Why 97% LTV mortgages are good for housing

With the right lending recipe, these loans can beat default rates of other loan types
By imposing just one compensating factor, in this case higher FICO score, the risk of a 97% LTV loan can be modulated to be at or below that of a 95% LTV loan.
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