We examine the impact of banks' exposure to market liquidity shocks through wholesale funding on their supply of credit during the financial crisis in the United States. We focus on mortgage lending to minimize the impact of confounding demand factors that could potentially be large when...

This paper examines how broker involvement in during mortgage origination affects the leverage of borrowers. Using loan-to-value and debt-coverage-ratios of mortgages, we document that despite commission incentives being present, broker involvement is not systematically related to increases in...

This paper shows the importance of interest rate risk and prepayment risk in fixed-rate mortgages in influencing banks’ securitization of mortgages. Banks with longer-maturity liabilities are more capable of taking the interest rate risk and therefore securitize fewer mortgages. In contrast,...

Macroprudential policies are often aimed at the traditional banking sector while nondepository financial institutions or shadow banks have limited or no prudential regulations. This paper studies the macroeconomic impact of household-side macroprudential tightening in the presence of unregulated...

The crisis has highlighted the importance of setting up macro-prudential oversight frameworks, having effective macro-prudential instruments in place to be called upon to mitigate growing financial imbalances as needed. We develop a new approach using the euro area Bank Lending Survey to assess...

Mortgage fees that are charged by lenders have caused increasing concerns to borrowers and policymakers, and heighted debate over time with particular scrutiny during the recent global financial crisis. Interestingly however, there is almost no research on mortgage fees in the Australian...

This paper documents an industry expertise channel that reduces the information asymmetry between banks and mortgage borrowers. This channel is a result of information spillover from a bank’s specialization in corporate lending to its mortgage lending. We find that banks indeed rely on the...

In highly developed countries the state of the building industry and real estate trade is a determinant of the condition of the national economy and the population's welfare. Housing investments ,including both the construction of new houses and flats as well as the modernisation of old housing...

We introduce a novel application of machine learning to compare the Pooling and Servicing Agreements (PSA) that govern asset-backed securities. The PSA is often viewed as mostly boilerplate legal text and thus may appear similar across deals despite heterogeneity in the underlying collateral and...