Published on April 14, 2023 by Morgan Black
Rusty Yerkes, associate professor of finance and Medical Properties Trust fellow in Samford University’s Brock School of Business, is a key researcher in a groundbreaking study that examines the secondary market effects from securitization, specifically the mortgage securitization process by Ginnie Mae (GNMA). The final article by Yerkes and his co-researchers from Mississippi State University, “Risk in Loan Pools of GNMA-Guaranteed Securities: Evidence from Bank and Non-Bank MBS Issuers,” was published in a top 10 national real estate journal, the Journal of Housing Research.
Yerkes and his co-authors at Mississippi State University, Assistant Professor Brian Blank and Professor Mike Highfield, used Quantalytix, the provider of Enterprise Bank Management software for financial institutions, to analyze mortgage market data aggregated to lenders and originators. The data provided by Quantalytix yielded key findings for the housing industry that may have long-run implications for investors and taxpayers in the event of default. The data aided their research by adding several custom dimensions to expand the quantitative range and analytical capability of the dataset.
Yerkes said, “We found prior research focuses extensively on mortgage origination but less so on secondary market effects from securitization. Current conditions in the housing market are very tight, and with interest rates rising and the developing crisis in the banking sector, this issue is even more important.”
Birmingham, Alabama-based Quantalytix was founded by two former bankers who recognized a void in the current marketplace. In response, the company launched their cloud-based software and enterprise bank management platform that serves as a single-source of truth for reporting, analysis and profitability to drive actionable analytics. The platform seamlessly integrates with existing business systems, automatically aggregates data and provides real-time views of performance to enable more efficient operations, improve the customer experience, increase profitability and boost productivity.
Yerkes added, “We are grateful for the support from Chris Aliotta and Will Bryant at Quantalytix. In addition to offering strategic insight, we appreciate their willingness to make Quantalytix data available to us for the purpose of this research study.”
Samford is a leading Christian university offering undergraduate programs grounded in the liberal arts with an array of nationally recognized graduate and professional schools. Founded in 1841, Samford is the 87th-oldest institution of higher learning in the United States. Samford enrolls 5,791 students from 49 states, Puerto Rico and 16 countries in its 10 academic schools: arts, arts and sciences, business, divinity, education, health professions, law, nursing, pharmacy and public health. Samford fields 17 athletic teams that compete in the tradition-rich Southern Conference and ranks 6th nationally for its Graduation Success Rate among all NCAA Division I schools.