Using a novel data set, we study the soft information in subprime mortgages that is not verifiable by a third party, and its relationship with mortgage default. We find that lender effort to collect soft information is intertwined with borrower self-selection into subprime mortgages. We employ...

We document the effect of policy-induced credit supply on fueling asset prices that lead to financial crises and broad economic outcomes. By comparing loans that fall under the current conforming loan limit (CLL) to those under the old limit last year in a difference-in-differences setting, we...

This paper investigates the risk-return relationship in determination of housing asset pricing. In so doing, the paper evaluates behavioral hypotheses advanced by Case and Shiller (1988, 2002, 2009) in studies of boom and post-boom housing markets. The paper specifies and tests a housing asset...