Getting Rich on Government-Backed Mortgages
A branch manager gets home loans for borrowers with weak credit or low incomes—and taxpayers back him up. Prashant Gopal Bloomberg Businessweek May 24, 2018 External Link
Economic Consequences of Housing Speculation
By exploiting variation in state capital gains taxation as an instrument, we analyze the economic consequences of housing speculation during the U.S. housing boom in the 2000s. We find that [...]
The Spread of Deposit Insurance and the Global Rise in Bank Asset Risk since the 1970s
We construct a new measure of the changing generosity of deposit insurance for many countries, empirically model the international influences on the adoption and generosity of deposit insurance, and show [...]
Regulatory Capital Rules: Treatment of Land Development Loans for the Definition of High Volatility Commercial Real Estate Exposure
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are issuing a notice [...]
Mortgage Risk Since 1990
This paper provides a comprehensive account of the evolution of default risk for newly originated home purchase loans since 1990. We bring together several data sources to produce this history, [...]
Risk Management in Financial Institutions
We study risk management in financial institutions using data on hedging of interest rate and foreign exchange risk. We find strong evidence that better capitalized institutions hedge more, controlling for [...]
Credit Supply and Housing Speculation
Credit supply expansion fuels housing speculation, generating a boom and bust in house prices. U.S. zip codes more exposed to the 2003 acceleration of the private label mortgage securitization (PLS) [...]
In my back yard: Neighbourhood spillovers in mortgage foreclosure
Heavily depressed housing prices and high contemporaneous rates of foreclosure have been observed in many low-income and minority neighbourhoods in US cities, suggesting foreclosures may have spillover effects within neighbourhoods. [...]
How is Technology Changing the Mortgage Market?
The adoption of new technologies is transforming the mortgage industry. For instance, borrowers can now obtain a mortgage entirely online, and lenders use increasingly sophisticated methods to verify borrower income [...]
Eyes Wide Shut? The Moral Hazard of Mortgage Insurers during the Housing Boom
In the U.S. mortgage market, private mortgage insurance (PMI) is mandated for high-leverage mortgages purchased by Fannie Mae and Freddie Mac to serve as a private market check on GSE [...]