Dennis Capozza Principal

Phone: (734) 995-7271

Dennis Capozza is a founding principal of University Financial Associates LLC and is Professor Emeritus of Finance in the Ross School of Business at the University of Michigan. Dr. Capozza has extensive consulting experience with lenders and real estate related firms including Citicorp, Household Finance, GE Capital, Onyx Acceptance, FNMA, Freddie Mac, Berkshire Mortgage Finance, and Impac Mortgage Holdings.

He earned a B.A. degree from the University of Pennsylvania and a Ph.D. (Economics) from Johns Hopkins University. He has also served on the faculties at the Massachusetts Institute of Technology, the University of British Columbia and the University of Southern California.

Dr. Capozza has contributed over 100 articles to journals and books and is a leader in integrating the modern theory of finance into real estate and lending practice. He pioneered the use of contingent claims and arbitrage methods to value consumer loans and related instruments in his articles The Variable Rate Mortgage and Risk in the Mortgage MarketOptimal Mortgage Instrument DesignsMortgage Default in Local MarketsThe Conditional Probability of Default and Optimal Stopping and Losses on Subprime Loans.

He is editor of the Journal of Financial Abstracts: Real Estate, and a former editor of Real Estate Economics.

Selected Publications:

The Great Surge in Mortgage Defaults 2006-2009: The Comparative Roles of Economic Conditions, Underwriting and Moral Hazard, with R. Van Order, , J. of Housing Economics, 20, 2011, 141-151.

Deconstructing a Mortgage Meltdown: A Methodology for Decomposing Underwriting Quality, with C. Anderson and R. Van Order, , J. of Money Credit and Banking, 43:4, 2011, 609-631.

Subprime Transitions: Lingering or Malingering in Default with T. Thomson, , J. of Real Estate Finance and Economics, 33:3, 2006, 241-258.

Appraisal, Agency and Atypicality: Evidence from Manufactured Housing with T. Thomson and R. Israelsen, , Real Estate Economics, 33:3, 2005, 509-537.

Optimal Stopping and Losses on Subprime Mortgageswith T. Thomson, J. of Real Estate Finance and Economics, 2005, 30:2.

The Conditional Probability of Default, with D. Kazarian and T. Thomson, Real Estate Economics, 26:3, Fall, 1998, 359-390.

Mortgage Default in Local Markets, with D. Kazarian and T. Thomson, Real Estate Economics, 25, 4, Winter, 1997 631-655.

Taxes, Mortgage Borrowing and Residential Land Prices, with R.Green and P. Hendershott, in Economic Effects of Fundamental Tax Reform, H. Aaron and W. Gale, eds., Brookings, Washington, D.C., 1996.

Property Finance, with R. Van Order, in P. Newman, M. Milagate and J. Eatwell, The New Palgrave Dictionary of Money and Finance, Macmillan Press, 1992.

Mortgage Lending, with R. Van Order, in P. Newman, M. Milagate and J. Eatwell, The New Palgrave Dictionary of Money and Finance, Macmillan Press, 1992.