LaVaughn M. Henry |

Vice President and Senior Regional Officer

LaVaughn M. Henry, Vice President and Senior Regional Officer

LaVaughn Henry is vice president and senior regional officer of the Cincinnati Branch of the Federal Reserve Bank of Cleveland. Dr. Henry is responsible for building and maintaining a strong presence and reputation for the Reserve Bank throughout central and southern Ohio and eastern Kentucky. He also has responsibility for working with key stakeholders, including the board of directors of the Cincinnati Branch, business advisory councils, depository institutions, business and civic leaders, and the public.

Prior to joining the Bank in 2009, Dr. Henry served as senior director of market economics and risk analysis at PMI Group, one of the nation’s largest mortgage insurers. He previously held positions as director of regional communications at Fannie Mae and assistant regional manager for government affairs at Ford Motor Company.

Additionally, Dr. Henry has held senior economic positions with the Budget Committee of the U.S. House of Representatives, the Federal Housing Finance Agency (formerly the Office of Federal Housing Enterprise Oversight), the FDIC’s Resolution Trust Corporation, and PriceWaterhouseCoopers, where he led consulting engagements with the Federal Housing Administration.

Dr. Henry holds doctoral and master’s degrees in economics from Harvard University and a bachelor’s degree from Rockhurst University in Kansas City, Missouri. He is a member of the National Association for Business Economics, the American Economic Association, the International Association of Business Communicators, the Harvard Club of Cincinnati, and 100 Black Men of America.

  • Fed Publications
  • Other Publications
Title Date Publication Author(s) Type


2014, Second Quarter ; Metro Mix
Abstract: Although the recovery decelerated slightly during the last half of 2013, the Columbus economy remains strongly on the path of economic growth. The Columbus region continues to outpace the state of Ohio and other nearby metro areas in terms of employment and output growth. Because of its large investment in services dominated by educational institutions, the presence of the state capital, and multiple Fortune 500 companies either headquartered or doing business there, the region continues to see solid recovery across multiple sectors.



2014, Second Quarter ; Metro Mix
Abstract: The Lexington metro area continues to expand at a moderate pace as it benefits from significantly increased construction at the area’s largest employer, the University of Kentucky, and expansion at Toyota’s largest automotive plant outside of Japan. Area employment has returned to pre-recession levels as the region continues to benefit from growth in the construction, leisure and hospitality, and professional and business services sectors.



2014, Quarter 1 ; Metro Mix
Abstract: The Cincinnati metro area continues to outperform most other Ohio MSAs and many elsewhere in the Midwest.



2013-12 ; Economic Commentary
Abstract: The recent rise in the personal saving rate has been interpreted as a sign that consumers are paying down their debt and repairing the damage done to their nest eggs. But a close analysis suggests that many people are falling short of saving what they will need to maintain their standard of living in retirement. A growing body of research in behavioral economics, a branch of economics that studies the choices people make at the individual level, offers explanations for why that is, as well as new approaches to the problem.

Title Date Publication Author(s) Type
Measuring Household Economic Stress


August, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: For the past 40 years, economists have used various measures to estimate the amount of economic stress that the nation was feeling at any point in time. The unemployment rate, consumer inflation rate, and others have become most common in the popular economic lexicon. Today, however, much of the economic stress felt by households stems from the sharp decline in household wealth that has come mostly from falling house prices.

The Jumbo Mortgage Market?A Major Casualty of the Housing Market Decline


July, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: Much has been written about the evisceration of the subprime and Alt-A mortgage markets, and how they contributed to the broader decline in the housing and mortgage markets. Relatively little, however, has been written about the jumbo loan marke—those mortgages with loan amounts exceeding the statutory limitations of Fannie Mae and Freddie Mac (the Government Sponsored Enterprises, or GSEs).

An Update on Mortgage Loan Modification Programs


June, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: Although we think that the bottom in home sales has been passed, the tumult in the mortgage market is likely to continue for a while. Specifically, as a result of ongoing home price declines, upward payment adjustments on option ARMs, and unemployment increases—exacerbated by significant negative equity on many homeowners’ balance sheets—mortgage defaults are expected to rise further from their already record level over the next year.

Leading Economic Indicators of Future


May, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: There are several regular surveys whose results are viewed as near-term leading indicators of housing market activity. This article looks at the National Association of Realtors’ Pending Home Sales Index(PHSI), The National Association of Homebuilders /Wells Fargo Housing Market Index (HMI), and the Mortgage Bankers Association Mortgage Applications Survey(specifically the purchase applications component). We also consider PMI’s U.S. Market Risk Index with regard to its ability to predict future trends in house prices in each of the nation’s 381 MSAs.

What is Pushing Serious Delinquency Rates Up So Much?


April, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: The national unemployment rate has jumped to 8.5 percent from its trough of 4.4 percent in March 2007 (and non-farm payroll employment has declined by 5.1 million from peak-to-trough in this cycle). Over mostly the same period, national home prices have fallen by 21 percent (using the First American Core Logic Loan Performance house price index).

The Magnitude and Impact of Negative Equity


March, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: According to a recent study by FirstAmerican CoreLogic (FACL), over 8.3 million houses in the United States (about 20 percent of all homes with a mortgage) had mortgages that were larger than the value of the property at the end of 2008. This was up from 7.6 million houses (about 18 percent) at the end of the third quarter. During the fourth quarter, an average of 230,000 houses per month slid into negative equity positions.

Why is the Number of Vacant Units Up Again When the Inventory of Homes for Sale is Down?


February, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: Popular measures of the number of homes for sale show that they have fallen in recent months. The Census Bureau’s monthly estimate of the number of new homes for sale fell to 357,000 units in December, down by 38 percent from their July 2006 peak and at the lowest level since ugust 2003. The National Association of Realtors’ monthly estimate of total homes for sale dropped to 3.68 million units in ecember, down by nearly 20 percent from their peak just five months earlier and at the lowest level since January 2007.

Are Adjustable Rate Mortgages Next to be Included in the Endangered Species Act?


January, 2009 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: In February 2004, former Federal Reserve Board Chair Alan Greenspan stated, “American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.” He noted that given the long-term downward trend in interest rates, households might have done better by using adjustable-rate mortgages (ARMs) and riding those rates downward than by using fixed-rate mortgages and having to refinance at certain intervals in order to benefit from lower rates (and certainly would have done better than staying in a higher rate FRM without refinancing).

Recognizing a Bottom in the Housing Market


December, 2008 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: National house prices have fallen sharply since they peaked in 2006 or 2007 (depending upon which measure of prices is used). Peak-to-current declines in the three widely used repeat-transaction house price indices (HPIs) are −15.0 percent for Loan Performance (LP), −21.3 percent for S&P/Case-Shiller (Case-Shiller), and −7.9 percent for the Federal Housing Finance Agency (FHFA).

Real House Price Declines


November, 2008 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: It is well known by now that national house prices are falling, a rare occurrence (although regional price declines, sometimes significant, happen more often). Less well known is that when adjusted for inflation, national house prices normally decline in recessions, with the 2001 downturn the only time this has not occurred (with data back to the late 1960s). In the current cycle the decline in house prices since the late-2005/early-2006 peak, coupled with inflation over the same period, have combined to erase almost all of the above-normal real home price gains achieved between 2000 and 2005. Moreover, it appears that this decline in real house prices is not over yet.

Unemployment and House Prices—Round Two of House Price Declines


October, 2008 The Housing and Mortgage Market Review ; David Berson; Economic Commentary
Abstract: Thus far the primary cause of the national decline in home prices has been the substantial and long-lasting overhang of homes for sale, augmented by the increasing rate of foreclosures. With the slowdown in the economy, however, unemployment rates have increased across much of the country, and they probably haven?t peaked yet. The rise in unemployment rates will delay the bottoming in house prices, as more households will need to sell their homes as joblessness reduces their income and ability to afford their mortgage payments.