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Showing results 1 to 10 of approximately 38.
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Working Paper
Mortgage debt and household deleveraging: accounting for the decline in mortgage debt using consumer credit record data
One of the major reasons hypothesized for the tepid economic recovery thus far is the ongoing "deleveraging" process. From 2009:Q3 to 2011:Q3, aggregate household debt declined by about $1.5 trillion in real terms, with mortgage debt falling by about $1 trillion. Other than defaults, the factors driving the decline in aggregate debt are not precisely understood, in large part because the necessary data are not widely available. This paper draws on panel data consisting of individual credit records to better understand why mortgage debt has declined. I decompose changes in aggregate mortgage ...
Working Paper
Paying Too Much? Price Dispersion in the U.S. Mortgage Market
We document wide dispersion in the mortgage rates that households pay on identical loans, and show that borrowers' financial sophistication is an important determinant of the rates obtained. We estimate a gap between the 10th and 90th percentile mortgage rate that borrowers with the same characteristics obtain for identical loans, in the same market, on the same day, of 54 basis points|equivalent to about $6,500 in upfront costs (points) for the average loan. Time-invariant lender attributes explain little of this rate dispersion, and considerable dispersion remains even within loan officer. ...
Working Paper
How Much Does Racial Bias Affect Mortgage Lending? Evidence from Human and Algorithmic Credit Decisions
We assess racial discrimination in mortgage approvals using new data on mortgage applications. Minority applicants tend to have significantly lower credit scores, higher leverage, and are less likely than white applicants to receive algorithmic approval from race-blind government automated underwriting systems (AUS). Observable applicant- risk factors explain most of the racial disparities in lender denials. Further, we exploit the AUS data to show there are risk factors we do not directly observe, and our analysis indicates that these factors explain at least some of the residual 1-2 ...
Discussion Paper
The Ins and Outs of Mortgage Debt : An Update
Real household mortgage debt has been flat over the past two years. However, as described in more detail below, new data on credit flows reveal that mortgage inflows have picked up for the first time since before the financial crisis, including to individuals with lower credit scores.
Discussion Paper
The Decline in Lending to Lower-Income Borrowers by the Biggest Banks
Data collected under the Home Mortgage Disclosure Act (HMDA) reveal that the largest banks have significantly reduced their share of mortgage lending to low- and moderate-income (LMI) households in recent years.
Journal Article
The 2014 Home Mortgage Disclosure Act Data
This article provides an overview of the 2014 data reported under the Home Mortgage Disclosure Act of 1975 and analyzes mortgage market activity over time as well as lending patterns across different demographic groups and lender types. The number of home-purchase originations was about 4 percent higher in 2014 than in 2013, while the number of refinance loans was 55 percent lower. We document an increasing share of mortgage loans originated by independent, nondepository mortgage companies. In addition, we analyze the possible effects of recent changes to rules regulating the mortgage market.
Working Paper
The depth of negative equity and mortgage default decisions
A central question in the literature on mortgage default is at what point underwater homeowners walk away from their homes even if they can afford to pay. We study borrowers from Arizona, California, Florida, and Nevada who purchased homes in 2006 using non-prime mortgages with 100 percent financing. Almost 80 percent of these borrowers default by the end of the observation period in September 2009. After distinguishing between defaults induced by job losses and other income shocks from those induced purely by negative equity, we find that the median borrower does not strategically default ...
Discussion Paper
Changing FHA Mortgage Insurance Premiums and the Effects on Lending
This note explores the effect of changes in Federal Housing Administration (FHA) mortgage insurance premiums (MIP) on mortgage borrowing activity. Reacting to changing conditions in the mortgage market as well as the state of its own balance sheet, the FHA has adjusted its pricing rules a number of times in the wake of the financial crisis.
Discussion Paper
Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances
New data from the 2019 Survey of Consumer Finances (SCF) show that long-standing and substantial wealth disparities between families in different racial and ethnic groups were little changed since the last survey in 2016; the typical White family has eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family.
Discussion Paper
Money in the Bank? Assessing Families' Liquid Savings using the Survey of Consumer Finances
We estimate that sixty percent of American families have liquid savings of less than three months of their own expenses, and nearly one-quarter have less than $400. In this Note we use data from the Federal Reserve Board's triennial Survey of Consumer Finances (SCF) to directly assess American families' liquid savings.