Do mortgage rates vary based on household default characteristics? Evidence on rate sorting and credit rationing

Autor:	Stuart S. Rosenthal, John V. Duca
Rok vydání:	1994
Předmět:	Economics and Econometrics Actuarial science Credit reference Shared appreciation mortgage Urban Studies Credit default swap index Credit history Accounting Economics Credit derivative Mortgage underwriting Credit crunch Finance Credit risk
Zdroj:	The Journal of Real Estate Finance and Economics. 8:99-113
ISSN:	1573-045X 0895-5638
DOI:	10.1007/bf01097032
Popis:	Credit “screening models” suggest that lenders vary loan rates and debt ceilings across applicants on the basis of credit risk. We argue that regulatory constraints such as Fair Lending Laws may preclude rate sorting while increasing lender use of debt ceilings to adjust for applicant credit risk. Using household data from the 1983 SCF, we find that mortgage rates do not vary with applicant credit risk whereas related studies find that debt ceilings vary with borrower risk attributes. Together, these findings support arguments that regulatory constraints reduce rate sorting while increasing the use of non-price terms in the mortgage contract.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::028470ed0fb3686db7dc8234cd46fa2a https://doi.org/10.1007/bf01097032 Zobrazit plný text záznamu Plný text ve formátu PDF