Working Paper
The role of warrants in corporate reorganizations
Longhofer, Stanley D. (1995)
An argument that informational asymmetries explain why the original shareholders of some firms emerge from Chapter 11 bankruptcy proceedings with stock in the reorganized company, while others receive warrants. By proposing a reorganization plan in which they receive warrants, the original stockholders of a firm with good future prospects can signal their superior information to the creditors in a way that firms with poor prospects will not wish to mimic.
Working Papers (Old Series) , Paper 9512

Journal Article
Beneath the rhetoric: clarifying the debate on mortgage lending discrimination
Longhofer, Stanley D.; Peters, Stephen R. (1998-10)
The authors' simple model of the mortgage underwriting process provides a framework within which to define discrimination and various notions of the default rate. By providing those with differing views a common framework for discussing their positions, the model clarifies and reconciles some of the most controversial issues in the debate over mortgage discrimination. It also shows how this theoretical framework can help in the design of practical policy responses to this vexing social problem.
Economic Review , Volume 34 , Issue Q IV , Pages 2-13

Journal Article
Rooting out discrimination in home mortgage lending
Longhofer, Stanley D. (1995-11)
An argument that racial discrimination in the home mortgage market arises not only from bigotry, but from statistical discrimination (wherein race is correlated with some hard-to-measure determinants of creditworthiness) and from a lack of cultural affinity between lenders and minorities. The author argues that each of these causes may require a different remedy.
Economic Commentary , Issue Nov

Working Paper
The importance of bank seniority for relationship lending
Santos, João A. C.; Longhofer, Stanley D. (1998)
The authors examine two aspects of a bank's interaction with its borrowers--the relative priority of bank debt and the role of banks as "relationship lenders." They show that making the bank senior improves its incentives to build a relationship with the firm, thereby fulfilling an important function of intermediated debt.
Working Papers (Old Series) , Paper 9808

Conference Paper
Housing-finance intervention and private incentives: helping minorities and the poor
Longhofer, Stanley D.; Calomiris, Charles W.; Kahn, Charles M. (1994)
Proceedings

Journal Article
Beneficial "firm runs"
Longhofer, Stanley D. (1998-01)
The author argues that runs, which are generally considered undesirable, also have a beneficial effect--improving lenders' monitoring incentives. Lenders' ability to run on the firm helps control its moral hazard problem, while the first-come, first-served aspect of asset distribution keeps lenders from wanting to free ride on the monitoring efforts of others.
Economic Review , Volume 34 , Issue Q I , Pages 21-29

Working Paper
Anatomy of a fair-lending exam: the uses and limitations of statistics
Calem, Paul S.; Longhofer, Stanley D. (2000)
In this paper, we consider the role of statistical analysis in fair lending compliance examinations. We present a case study of an actual examination of a large mortgage lender, demonstrating how statistical techniques can be a valuable tool focusing examiner efforts to either uncover illegal discrimination or exonerate an institution so accused. Importantly, our case also highlights the limitations of such statistical techniques. The study suggests that statistical analysis combined with comparative file review offers a balanced and thorough approach to enforcement of fair lending laws.
Finance and Economics Discussion Series , Paper 2000-15

Journal Article
Mortgage scoring and the myth of overrides
Longhofer, Stanley D. (2002-10)
While many perceive a dark side to the use of overrides in the mortgage underwriting process, Stanley Longhofer of Wichita State University disagrees. This article concludes the five-part series on credit scoring and fair mortgage lending.
Communities and Banking , Issue Fall , Pages 18-21

Journal Article
Discrimination in mortgage lending: what have we learned?
Longhofer, Stanley D. (1996-08)
A retrospective on the debate over the presence of discrimination in the residential mortgage market, examining some of the evidence that's been gathered since the Federal Reserve Bank of Boston published its 1992 study concluding that minority applicants were over 50 percent more likely to be denied a loan than whites.
Economic Commentary , Issue Aug

Journal Article
Absolute priority rule violations in bankruptcy
Longhofer, Stanley D.; Carlstrom, Charles T. (1995-10)
An examination of the impact of APR violations, demonstrating that the efficiency of such violations depends on the specific contracting problem with which a firm and its creditors are faced, and that as a result, an optimal bankruptcy institution should allow contract participants to decide ex ante whether such violations will occur.
Economic Review , Issue Q IV , Pages 21-30