Abstract This paper examines racial disparities in mortgage processing time prior to the global financial crisis. We find that Black borrowers are underrepresented and experience a longer than white among mortgages securitized by government-sponsored enterprises (GSEs). At same time, borrower overrepresented face similar privately (PLS) mortgages. Additionally, strongly associated with faster s...

In 2009, the Federal Reserve subjected nonbank mortgage-originating subsidiaries of bank holding companies (BHCs), but not independent (INB) mortgage originators, to consumer compliance supervision. We examine effects this regulatory change on pricing and performance originations using a sample conventional, first-lien, amortizing mortgages originated between 2000 2015. find that subsidiary (SN...

Abstract We estimate the willingness-to-pay to bypass a loan-to-value (LTV) cap. Our identification relies on exogenous variation in debt exempt from LTV regulation that can only be used as substitute for personal mortgage. baseline reveals homebuyers pay 7.3 Swedish Kroner (SEK) avoid 1 SEK of equity down payment. The supply not part calculation increased by approximately 50% within 2 years af...

Housing wealth constitutes most of the non-pension wealth of the elderly population. This study analyzes the potential of reverse mortgages to increase the income and liquid wealth of the elderly by identifying households with relatively high levels of housing equity. Because this article looks at the whole distribution of elderly households and considers debt as well as income, it finds a larg...

A formal home loan is onerous to subprime borrowers in efficient markets. This can deter homeownership for financially strapped individuals, leading to amarket failure. This paper proposes a special formof cooperativemortgagefinancing (practiced inOman) to overcome this market failure. We integrate the literature of mortgage design with that of informal savings schemes (i.e., ROSCAs/ASCRAs) to ...

Mortgages play a significant role in the US economy. Americans predominantly use fixed-rate mortgages (FRMs) to avoid interest rate risk, but related risk aversion cost has not been analyzed yet. This paper fills gap by investigating of choosing FRMs over adjustable-rate (ARMs). We find that ex post, FRM borrowers made 12% – 23% higher payments 0.66% 1.62% potential ARM payment shocks. Conseque...

Despite the growing importance of financial lending in homeownership acquisition urban China, differing uses instruments across home buyers have rarely been examined. This study reveals temporal dynamics used to fund purchases since 1998 and factors influencing buyers’ different use commercial mortgages, Housing Provident Fund (HPF) loans, combined mortgages. Using 2017 China Households Finance...