With regard to the recent US house price cycle, we analyze how the interaction between housing supply restrictions, mortgage credit constraints and a price-to-price feedback loop affects house price volatility. Considering 247 Metropolitan Statistical Areas, we estimate a simultaneous boom-bust...

Many writers have been quick to blame the high rate of foreclosures on subprime mortgages on what they call greedy, predatory lenders who exploited poor, unsophisticated and uneducated borrowers. The problem with this interpretation is that it cannot explain the behavior of foreclosure rates on...

Many writers have been quick to blame the high rate of foreclosures on subprime mortgages on what they call greedy, predatory lenders who exploited poor, unsophisticated and uneducated borrowers. The problem with this interpretation is that it cannot explain the behavior of foreclosure rates on...

The Community Reinvestment Act (CRA) encourages banks to expand mortgage lending in the communities in which they have branch offices, subject to maintaining overall levels of financial safety and soundness. Some have argued that this regulation forced banks to lower their credit standards and...

How do technological advancements in credit markets affect minority communities? We use the endorsement of FICO credit scores by the Government Sponsored Enterprises (GSEs) in mortgage underwriting to answer this question. The use of credit scores led to the sorting of prime and subprime lenders...

I examine the CRA's impact on the approval rates of non-prime loans that consist of higher-priced subprime loans and loans guaranteed by the FHA. Although both loans are for riskier borrowers, subprime lending has been largely responsible for the mortgage crisis in the United States. I use loan...

We apply unique loan level data from New Century Financial Corporation, a major subprime lender, to explore whether attributes and committee assignments of Congressional Representatives were associated with access to and pricing of subprime mortgage credit. Research findings indicate enhanced...

Mortgage loans kept growing in Q2 2014. A total of Rb 434,8bn mortgage residential loans (MRLs) were extended in the period between April and June of the current year, up by 37.87% compared to the lending volume in Q2 2013, and a total of Rb 769,5 of MRLs were extended in the first half of the...

In this paper the authors present an agent-based model of a credit network economy. The artificial economy includes different economic agents that interact using simple behavioral rules through various markets, i.e., the consumption goods market, the labor market, the credit market and the...

This paper investigates the housing and mortgage markets by means of an agent-based macroeconomic model of a credit network economy. A set of computational experiments have been carried out in order to explore the effects of different households’ creditworthiness conditions required by banks...