Category: Recommended Reads

COVID-19 Mortgage Relief-The Role of Income Support

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The blog links both prior and forthcoming research on when consumers are likely to stop paying their mortgages due to a “double trigger” from income shocks due to job losses or other events that then cause drops in housing prices. The authors conclude that income support to households and small businesses in the wake of the COVID-19 pandemic has limited disruption to date in the housing market in addition to supporting individual families.

Chris Cunningham & Kris Gerardi, Federal Reserve Bank of Atlanta

Mortgage Credit Tightens, Creating Drag on Any Economic Recovery

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This article examines changes in mortgage lending, including tightening of lending standards and narrowing of product offerings, since the passage of the CARES Act. The authors compare these changes to lenders’ reaction to the 2008 financial crisis and assess how they affect broader economic recovery.

Andrew Ackerman and Nick Timiraos, Wall Street Journal

How the Pandemic Makes a Case for a “Public Venmo”

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This article evaluates how the need to distribute emergency funds widely and quickly may spur the creation of a new, publicly run payment system. The author highlights recent legislative initiatives like one in New York that would provide residents with a digital wallet and discusses the implications of central bank account provisioning by the Federal Reserve.

Mike Orcutt, MIT Technology Review

What are Banks Doing to Address the Impacts of COVID-19 on LMI Communities?

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This research brief surveys how banks are prioritizing pandemic-related needs and being responsive to evolving community conditions in light of their Community Reinvestment Act obligations. Based on a survey of community development officers, institutions are starting to shift beyond meeting short-term needs and leveraging existing projects to develop ideas for new and innovative programs on small-dollar lending, small business technical assistance, and other topics.

Bina Shrimali, Federal Reserve Bank of San Francisco

Should We Trust Algorithms?

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This article addresses concerns about the ethical use of AI algorithms given their prominence in so many facets of daily life.The author argues that distinguishing the trustworthiness of claims made about an algorithm from those made by an algorithm can improve how we evaluate individual algorithms or uses and promote ‘intelligent transparency.’ He proposes a four-part framework inspired by pharmaceutical development for evaluating the trustworthiness of algorithms.

David Spiegelhalter, Harvard Data Science Review

Why Are We Using Black Models in AI When We Don’t Need to? A Lesson from an Explainable AI Competition

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This report from an explainable AI competition raises the question whether model developers need to rely on “black box” machine learning techniques or can meet their needs using more interpretable forms of machine learning.

Cynthia Rubin and Joanna Rudin, Harvard Data Science Review

Our Weird Behavior During the Pandemic is Messing with AI Models

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Using online retail search data, this article explores how dramatic shifts in consumer behavior during the quarantine affected algorithms used to manage inventory, sell ads, and screen for fraud. It underscores the role of informed and timely governance – including human intervention – to ensure algorithm performance.

Will Douglas Heaven, MIT Technology Review

Covid-19 could devastate minority-owned businesses, amid fears they’ll also miss out on aid

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This article examines the prospects for minority-owned businesses for navigating the economic crisis brought by COVID-19, given that they are less likely to have a financial cushion, are concentrated in communities and industries severely affected by the pandemic, and may face particular challenges participating in relief programs.​

Hannah Knowles, Washington Post

Fintechs help banks manage deluge of emergency small-business loans

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A variety of technology companies have adapted software and platforms to support emergency small business lending. This article explores the various ways in which fintechs have helped banks implement the Paycheck Protection Program, including allow banks to automate application review and underwriting, collecting and verifying documents, and transmitting information to the Small Business Administration.​

Miriam Cross, American Banker

The Pandemic is Shrinking the Mortgage Credit Box

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The economic effects of COVID-19 are beginning to narrow lending in the mortgage market and point to a return to the period between 2010 and 2013 in which only borrowers with nearly pristine credit could obtain a mortgage.

Michael Neal and Laurie Goodman, Urban Institute

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