Mortgage Supply and Housing Rents

Gete, Pedro; Reher, Michael

doi:10.2139/ssrn.2756056

Cited by 24 publications

(24 citation statements)

References 16 publications

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“…This change likely had an effect, on banks' incentives to originate conforming-size loans, but not jumbo loans. Gete and Reher (2016) analyze the effect of these new rules on house rents using information for a sample of owner-occupied mortgage applications. 29 For details, see the Federal Financial Institutions Examination Council guidelines on HMDA reporting at http://www.ffiec.gov/hmda/pdf/DepCriteria0204.pdf HMDA data provide the action taken on each loan application (whether it was approved, denied, or withdrawn); the loan amount; the income of the applicant; whether the application is single or joint (with a co-applicant); the racial and ethnic classification of the applicant (and the co-applicant, if applicable); and the state, county, and census tract location of the subject property.…”

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confidence: 99%

Prudential Policies and Their Impact on Credit in the United States

Calem

Correa

Lee

2016

internationalfinance

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We analyze how two types of recently used prudential policies affected the supply of credit in the United States. First, we test whether the U.S. bank stress tests had any impact on the supply of mortgage credit. We find that the first Comprehensive Capital Analysis and Review (CCAR) stress test in 2011 had a negative effect on the share of jumbo mortgage originations and approval rates at stress-tested banks-banks with worse capital positions were impacted more negatively. Second, we analyze the impact of the 2013 Supervisory Guidance on Leveraged Lending and subsequent 2014 FAQ notice, which clarified expectations on the Guidance. We find that the share of speculative-grade term-loan originations decreased notably at regulated banks after the FAQ notice. JEL classification codes: G21, G23, G28

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confidence: 99%

Prudential Policies and Their Impact on Credit in the United States

Calem

Correa

Lee

2016

internationalfinance

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“…28 The motivation for this specification is that researchers have found that reported incomes in HMDA appear to be overstated, particularly in 2005and 2006(e.g. Avery et al (2012, Blackburn and Vermilyea (2012)).…”

Section: A3 Robustness Results For Sectionmentioning

confidence: 99%

Measuring Mortgage Credit Availability: A Frontier Estimation Approach

Anenberg

Hizmo

Kung

et al. 2017

FEDS

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We construct a new measure of mortgage credit availability that describes the maximum amount obtainable by a borrower of given characteristics. We estimate this "loan frontier" using mortgage originations data from 2001 to 2014 and show that it reflects a binding borrowing constraint. Our estimates reveal that the expansion of mortgage credit during the housing boom was substantial for all borrowers, not only for low-score or low-income borrowers. The contraction was most pronounced for lowscore borrowers. Using variation in the frontier across metropolitan areas over time, we show that borrowing constraints played an important role in the recent housing cycle. * We thank

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“…It is worth noting that large institutions' share of single-family purchases or sales was close to zero in 2007. Despite the rise that 13 Note that this list overlaps significantly with Mills, Molloy, and Zarutskie (2017). began after 2010, in 2014 their shares remained small: The average share of large institutions as buyers was 1.47 percent.…”

Section: Identities Of Institutional Investorsmentioning

confidence: 99%

Institutional Investors and the U.S. Housing Recovery

Lambie‐Hanson¹,

Li²,

Slonkosky³

2019

Working Paper (Federal Reserve Bank of Philadelphia)

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We study the house price recovery in the U.S. single-family residential housing market since the outbreak of the mortgage crisis, which, in contrast to the preceding housing boom, was not accompanied by a rise in homeownership rates. Using comprehensive property-level transaction data, we show that this phenomenon is largely explained by the emergence of institutional investors. By exploiting heterogeneity in a county's exposure to local lending conditions and to government programs that affected investors' access to residential properties, we estimate that the increasing presence of institutions in the housing market explains over half of the increase in real house price appreciation rates between 2006 and 2014. We further demonstrate that institutional investors contribute to the improvement of the local housing market by reducing vacancy rates as they shorten the amount of time distressed properties stay in REO. Additionally, institutional investors help lower local unemployment rates by increasing local construction employment. However, institutional investors are responsible for most of the declines in the homeownership rates.

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Mortgage Supply and Housing Rents

Cited by 24 publications

References 16 publications

Prudential Policies and Their Impact on Credit in the United States

Prudential Policies and Their Impact on Credit in the United States

Measuring Mortgage Credit Availability: A Frontier Estimation Approach

Institutional Investors and the U.S. Housing Recovery

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