Richard F. DeMong

Virginia Bankers Professor of Bank Management

Office phone: 434-924-3227
e-mail: rfd@virginia.edu

Education:

Ph.D., Finance and Management Science, University of Colorado, Boulder
M.B.A., The College of William & Mary
B.A., Political Science, California State University at Long Beach
CFA—Chartered Financial Analyst

Areas of Expertise:

Professor DeMong specializes in home equity and mortgage lending, bank investment strategies, and equity valuation. His current research focuses on mortgage and home equity lending to prime and subprime borrowers and financial management of private companies. Additional areas of research include equity market microstructure and assessment. He teaches managerial finance and investments.

Professional Activities:

Professor DeMong is widely quoted in his research on nonprime mortgage and home equity lending. He has taught seminars on equity analysis and bank financial management. His consulting activities include being the financial consultant to several large medical trusts. Professor DeMong testified to two subcommittees of the U.S. House of Representatives. Professor DeMong’s recent publications include “Subprime Home Equity Lending,” in Equity; “Procter and Gamble, Thailand and the Devaluation of the Baht,” in Journal of Finance Case Research; “How Lenders Are Marketing Home Equity Products,” co-authored with Professor John H. Lindgren Jr., in Journal of Retail Banking Services; and a co-authored monograph with Professor John H. Lindgren Jr. titled “Home Equity Loan Study.” He is a co-author of Principles of Financial Management. He recently published a chapter, “Bank Investment Portfolios: Trends and Analysis,” in the Commercial Bank Investment Manual, and another chapter, “Trust Department Performance: Trends and Analysis,” in the Trust Department Management Manual. Professor DeMong has recent articles in Journal of Retail Banking and in Issues in Accounting Education. He has written several cases, including an ethics case, “SNB Annual Conference,” and an international case, “P&G–Thailand,” which was selected as the Best International Finance Case of 2002 by the Financial Management Association. Professor DeMong was elected as the secretary of the general faculty of the University of Virginia. He was a director of the Universal Bond Fund. He has been a director of several nonprofit organizations and is currently a director of Innisfree Village. Professor DeMong previously worked for Douglas Aircraft and Union Bank. He is retired from the U.S. Air Force Reserves as a colonel.

Selected Publications:

“Mortgage Pricing Is Based on Risk,” coauthored with James E. Burroughs, Equity, September/October 2005, pp. 18-21.

“Prepayment Fees Lead to Lower Interest Rates,” coauthored with James E. Burroughs, Equity, November/December 2005, pp. 19-21.

“The Nonprime Mortgage Market in the United States,” NMN Plus, http://www.nationalmortgagenews.com/nmn/plus148.htm, February 2005.

“Analysis of 1st Quarter 2004 Mortgage Lending in New Jersey and Pennsylvania,” coauthored with Richard G. Netemeyer, www.NHEMA.org, September 2004.

“Risk or Race in Subprime Mortgage Lending? A Review of the Empirical Evidence,” coauthored with James E. Burroughs, Coalition for Fair and Affordable Lending, March 2004.

“The Impact of the New Jersey Home Ownership Security Act of 2002,” http://www.NHEMA.org/press.asp?bid=596, March 2004
Abstracted: “Impartial Study Finds Two-thirds Drop in Lending Due to Law,” Equity, June 2004.

“Procter and Gamble, Thailand and the Devaluation of the Baht,” Journal of Finance Case Research, 6 Number 1, 2004, pp. 1-22.

“Tyco” case, February 2004.

“The Potential Impact of the New Jersey Home Ownership Security Act of 2002,” http://www.NHEMA.org, December 2003.

“Amazon.Com Valuation” case, August 2002.

“Twinrock Capital Funds” case, August 2002.

“Proctor & Gamble-Thailand” case, 2001 (2002 Best International Case Award, Financial Management Association, 2002).

“Bank Investment Portfolios in 2000,” Commercial Bank Investment Management Manual, Sheshunoff Information Services Inc., June 2001.

“Investment Portfolios,” Commercial Bank Investment Management Manual, Sheshunoff Information Services Inc., December 2000.

“Overview,” The Technology Industry: Impact of the Internet, Charlottesville, Virginia: Association for Investment Management and Research, 2000. Also published at http://www.aimr.org/memservices/private/pdf/Technology.pdf.

The Technology Industry: Impact of the Internet, Editor, Charlottesville, Virginia: Association for Investment Management and Research, 2000. Also published at http://www.aimr.org/memservices/private/pdf/Technology.pdf.

Contemporary Finance Journal 3:1, Spring 1999, pp. 67-68, Abstract of “Herding and Feedback Trading by Institutional and Individual Investors,” The Journal of Finance, Vol. 54, No. 6 (December 1999), pp. 2263-2295.

"How Lenders Are Marketing Home Equity Products," Journal of Retail Banking Services, Spring 1999 (with J.H. Lindgren Jr.).

"Subprime (B& C Credit) Mortgage Loans," Equity, Fall 1999.
Contemporary Finance Journal, 2, Autumn 1998, Abstract of "Myth or Reality? The Long-Run Underperformance of Initial Public Offerings: Evidence from Venture and Nonventure Capital-Backed Companies," The Journal of Finance Vol. LII, No. 5 (December 1997), pp. 1791-1821.

Contemporary Finance Journal 1, Winter 1997, pp. 51-52, Abstract of "Internal Capital Markets and the Competition for Corporate Resources," by Jeremy C. Stein, Journal of Finance, March 1997, 52, pp. 11-133.

Home Equity Loan Study: An Analysis of the Year-End 1997, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1998.

"Bank Investment Portfolios: Trends and Analysis," Commercial Bank Investment Manual, Financial Management Series, edited by Edmund A. Mennis, Boston: Sheshunoff Information Services, Inc., 1989, 
pp. 15-1 to 15-22. Revised, June 1990; revised, January 1991; revised, June 1991; revised, December 1991; revised, May 1992; revised, September 1992; revised, May 1992; revised, December 1992; revised, June 1993; revised, December 1993; revised, June 1994; revised, December 1994; revised, June 1995; revised, December 1995; revised, April 1996; revised, October 1996; revised May 1997; revised December 1997; revised March 1998; revised December 1998; revised May 1999 and revised December 1999. 

Home Equity Loan Study: An Analysis of the Year-End 1996, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1997.

"Trust Department Performance: Trends and Analysis," Trust Department Management Manual, Financial Management Series Chapter 15, edited by Edmund A. Mennis, Boston: Sheshunoff Information Services, Inc., 1989, pp. 9-1 to 9-68. Revised, June 1990; revised, December 1991; revised, March 1992; revised, December 1992; revised, December 1993; revised, December 1994; revised, October 1995; revised, October 1996; revised October 1997; and revised October 1998. 

Home Equity Loan Study: An Analysis of the Year-End 1995, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1996.

"Home Equity Lending: Results Reveals Bright Picture," coauthored with John H. Lindgren, Jr., Journal of Retail Banking, 17, 1995, pp. 37-48.

Home Equity Loan Study: An Analysis of the Year-End 1994, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1995.

"Smith-Midland, Inc.," case coauthored with David B. Croll and John M. Gwin, McIntire International Case Competition, 1995.

Home Equity Lending Survey for Year End 1993, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1994.

"Designing an Assessment Program for Accounting," coauthored with John H. Lindgren, Jr. and Susan E. Perry, Issues in Accounting Education 9, Spring 1994, pp. 11-27.

Home Equity Lending Survey for Year End 1992, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1993.

"1991 Home Equity Borrowers," coauthored with John H. Lindgren, Jr., Equity, September 1992, pp. 4-10.

"Overview of Investing Worldwide III," Investing Worldwide III, Charlottesville, Virginia: Association for Investment Management and Research, 1992, pp. 1-4.

Investing Worldwide III, editor, Charlottesville, Virginia: Association for Investment Management and Research, 1992.

Home Equity Lending Survey for Year End 1991, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1992.

"SNB Annual Conference," Business Ethics Collection, Arthur Andersen & Co., S.C., 1991.

Home Equity Lending Survey for Year End 1990, coauthored with John H. Lindgren Jr., Arlington, Virginia: Consumer Bankers Association, 1991.

"Home Equity Lending: Trends and Analysis," coauthored with John H. Lindgren Jr., Journal of Retail Banking 12, Winter 1990, pp. 41-44.
Home Equity Lending Survey for Year End 1989, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1990.

"Home Equity Lending in 1988: Trends and Analysis," coauthored with John H. Lindgren, Jr., Journal of Retail Banking 11, Fall 1989, pp. 23-34.

1989 Home Equity Lending Survey for Year End 1988, coauthored with John H. Lindgren, Jr., Arlington, Virginia: Consumer Bankers Association, 1989.

"Composition of Bank Investment Portfolios," Commercial Bank Investment Management Manual, Financial Management Series, Chapter 15, edited by Edmund A. Mennis, Boston: Sheshunoff Information Services, Inc., 1989, pp. 15-1 to 15-20.

"Cunningham's Bookstore, Inc.," case coauthored with Neil H. Snyder, John H. Lindgren, Jr., and David M. Maloney, 1989. Reprinted in Strategic Management Cases, by N. H. Snyder, A. J. Rowe, R. O. Mason, and K. D. Dickel, Addison-Wesley, 1991.

"Current Findings and Trends in Home Equity Credit," coauthored with Sandra L. Schmidt and John H. Lindgren, Jr., Journal of Retail Banking 9, Winter 1987-88, pp. 17-23.

Home Equity Lending Service, Chapter 1, "Executive Summary for the National Home Equity Lending Survey;" Chapter 2, "Contents for National Home Equity Lending Survey;" and Chapter 3, "Home Equity Lending in 1988," coauthored with John H. Lindgren, Jr. and Sandra L. Schmidt: Boston, Warren, Gorham & Lamont, Inc., 1988.

Principles of Financial Management, 2nd edition, coauthored with Burton A. Kolb, Plano, Texas: Business Publications, Inc., 1988.

Instructor's Manual to Accompany Principles of Financial Management, 2nd edition, coauthored with Burton A. Kolb, Plano, Texas: Business Publications, Inc., 1988.

Home Equity Lending Survey: Year End 1986, coauthored with John H. Lindgren, Jr. and Sandra L. Schmidt, Consumer Bankers Association, 1987. 

"The Changing Dow Jones Industrial Average," coauthored with Hartman L. Butler, Jr. Financial Analysts Journal, July/August 1986, pp. 59-62.

"Financial Analysts Research Foundation," Financial Analysts Journal 41, March/April 1985, p. 19.

Broader Perspectives on the Interest of Pension Plan Participants, Monograph Number 22, co-edited with William S. Gray, III and Robert D. Milne, Charlottesville, Virginia: Financial Analysts Research Foundation, 1985.

New Financial Instruments: A Descriptive Guide, Monograph Number 21, coauthored with Michael D Atchison and John L. Kling, Charlottesville, Virginia: Financial Analysts Research Foundation, 1985.

"Foreword," to Interest Rate and Stock Index Futures and Options Characteristics, Valuations and Portfolio Strategies, Monograph Number 18, by Robert W. Kolb and Gerald D. Gay, Charlottesville, Virginia: Financial Analysts Research Foundation, 1985, pp. viii-ix.

"New Financial Instruments," coauthored with Michael D Atchison and John L. Kling, Chapter in Financial Markets: Instruments and Concepts, Reston Publishing Company, Inc., Reston, Virginia, 1985.

Takeovers and Shareholders: The Mounting Controversy, co-edited with John W. Peavy III, Charlottesville, Virginia: Financial Analysts Research Foundation, 1985. Abstracted in The CFA Digest 15 (Fall 1985), Charlottesville, Virginia: The Institute of Chartered Financial Analysts, pp. 35-36.

"Naval Station Seashore: Financial Management," case, coauthored with Robert S. Kemp and David B. Croll, Naval Facilities Engineering Command: Housing Financial Manual, U.S. Department of Defense, Alexandria, Virginia, 1985; revised in 1986 and 1987.

"Is Curriculum Keeping Pace with Business?" coauthored with B. J. Campsey and L. C. Pettit, Jr.. Business Forum 8, Fall 1983, pp. 32-36.

"The Influence of Control on Financial Management: Further Evidence," coauthored with B.J. Campsey. Review of Business and Economic Research 18, Winter 1983, pp. 60-70.

"Award Fee Contract Provisions as a Program Management Tool," Proceedings of the 1983 Federal Acquisition Research Symposium, December 1983, pp. 168-174.

"Evaluating a Tax-Deferred Retirement Plan," coauthored with W. K. Carter. Journal of the Institute of Certified Financial Planners 3, Winter 1982, pp. 207-215.

"Surviving Money-Center Bank Competition," coauthored with B. J. Campsey, L.C. Pettit, Jr. and B. E. Gup. The Bankers Magazine 165, July/August 1982, pp. 47-52.

Starting a Small Business in Charlottesville and Albemarle County, editor, Central Virginia SCORE/ACE, 1982 and 1984.

"Surviving Interstate Competition," coauthored with B. J. Campsey, L. C. Pettit, Jr. and B. E. Gup. The Southern Banker 156, November 1981, p. 50.

"Cost Accounting for the Small Business," coauthored with David B. Croll. American Journal of Small Business 5, Spring 1981, pp. 48-57.

"The Underlying Theory of Incentive Contracting," coauthored with Daniel E. Strayer. Defense Management Journal 17, First Quarter 1981, pp. 42-51.

"Incentive Contracting: The Underlying Theory," coauthored with Daniel E. Strayer, The Proceedings: Ninth Annual DOD/FAI Acquisition Research Symposium, Department of Defense and the Federal Acquisition Institute, June 1980, pp. 10.3-10.10. Abstracted in Results of the Ninth Annual DOD/FAI Acquisition Research Symposium, Executive Office of the President, October 1980, p. 26.

"Finance Curriculum for the Future: Perceptions of Practitioners and Academicians," coauthored with B.J. Campsey and L. C. Pettit, Jr. Journal of Financial Education 8, 1979, pp. 45-48.

"Existing Sources of Small Business Information and Future Research Needs in Region III," coauthored with James F. Buck, in Status of Small Business-Region III: An Economic Study, Small Business Administration, 1979, pp. N1-N33. Abstracted in Economic Research on Small Business: The Environment for Entrepreneurship and Small Business, Small Business Administration, 1981, p.85.

"The Effectiveness of Incentive Contracting: What Research Tells Us," National Contract Management Quarterly Journal, 12, Fourth Quarter, December 1978, pp. 12-22. Reprinted in Government Contract Service, 10-79, May 1979; Yearbook of Procurement Articles, 16, 1979, pp. 257-270; and Contract Management Study Guide, 1980 and 1981, Fort Belvoir, Virginia: The Defense System Management College.

"A Test of Alternative Approaches to Security Selection," coauthored with Robert F. Vandell, abstracted in Proceedings of the Fifteenth Annual Meeting, Eastern Finance Association, April 1979, pp. 28-29.

"The Effectiveness of Incentive Contracting: What Research Tells Us," The Proceedings: Seventh Annual Acquisition Research Symposium, Department of Defense and the Federal Acquisition Institute, June 1978, pp. 262-26. Recipient of the 2nd place award.

"The Family Owned Business: Capital Funding," coauthored with Robert C. Dailey and Thomas E. Reuschling. American Journal of Small Business 2, October 1977, pp. 30-39.

"External Uncertainty for the Family Corporation: Sources and Strategies," coauthored with Robert C. Dailey and Thomas E. Reuschling. Journal of General Management 4, Winter 1976/77, pp. 60-67.

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