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Keywords:household finances 

Working Paper
Mortgage Choice in the Housing Boom: Impacts of House Price Appreciation and Borrower Type

The U.S. housing boom during the first part of the past decade was marked by rapid house price appreciation and greater access to mortgage credit for lower credit-rated borrowers. The subsequent collapse of the housing market and the high default rates on residential mortgages raise the issue of whether the pace of house price appreciation and the mix of borrowers may have affected the influence of fundamentals in housing and mortgage markets. This paper examines that issue in connection with one aspect of mortgage financing, the choice among fixed-rate and adjustable-rate mortgages. This ...
Working Paper Series , Paper 2014-5

Discussion Paper
Inequality in U.S. Homeownership Rates by Race and Ethnicity

Homeownership has historically been an important means for Americans to accumulate wealth—in fact, at more than $15 trillion, housing equity accounts for 16 percent of total U.S. household wealth. Consequently, the U.S. homeownership cycle has triggered large swings in Americans’ net worth over the past twenty-five years. However, the nature of those swings has varied significantly by race and ethnicity, with different demographic groups tracing distinct trajectories through the housing boom, the foreclosure crisis, and the subsequent recovery. Here, we look into the dynamics underlying ...
Liberty Street Economics , Paper 20200708a

Working Paper
Owner-Occupancy Fraud and Mortgage Performance

We use a matched credit bureau and mortgage dataset to identify occupancy fraud in residential mortgage originations, that is, borrowers who misrepresented their occupancy status as owner-occupants rather than residential real estate investors. In contrast to previous studies, our dataset allows us to show that – during the housing bubble – such fraud was broad based, appearing in the government-sponsored enterprise market and in loans held on bank portfolios as well, and increases the effective share of investors by 50 percent. We show that a key benefit of investor fraud was obtaining a ...
Working Papers , Paper 19-53

Report
Disaster (over-)insurance: the long-term financial and socioeconomic consequences of Hurricane Katrina

Federal disaster insurance?in the form of national flood insurance, the Federal Emergency Management Agency (FEMA), and other programs?is designed to nationally-distribute large geography-specific shocks like earthquakes and hurricanes. This study examines the local longrun net impact of Hurricane Katrina and the subsequent policy response on impacted residents. Using a unique fifteen-year panel of five percent of adult Americans? credit reports, we find higher rates of insolvency and lower homeownership among inundated residents of New Orleans ten years after the storm, relative to their ...
Staff Reports , Paper 807

Working Paper
How important is variability in consumer credit limits?

Credit limit variability is a crucial aspect of the consumption, savings, and debt decisions of households in the United States. Using a large panel, this paper first demonstrates that individuals gain and lose access to credit frequently and often have their credit limits reduced unexpectedly. Credit limit volatility is larger than most estimates of income volatility and varies over the business cycle. While typical models of intertemporal consumption fix the credit limit, I introduce a model with variable credit limits. Variable credit limits create a reason for households to hold both high ...
Working Papers , Paper 14-8

Working Paper
Division of Financial Responsibility among Mixed-Gender Couples

This paper uses individuals' self-assessments of their contribution to four household activities to study how mixed-gender couples divide household responsibility. Household responsibility dynamics are characterized according to a three-point ordinal variable, whose distribution is linked to a variety of household demographics via a proportional odds model fit using survey data from both members of 327 couples. The data reveal that household tendencies depend on household demographics, albeit differently across the four activities. For household shopping, gender is the primary determinant of ...
FRB Atlanta Working Paper , Paper 2021-8

Working Paper
Important Factors Determining Fintech Loan Default: Evidence from the LendingClub Consumer Platform

This study examines key default determinants of fintech loans, using loan-level data from the LendingClub consumer platform during 2007–2018. We identify a robust set of contractual loan characteristics, borrower characteristics, and macroeconomic variables that are important in determining default. We find an important role of alternative data in determining loan default, even after controlling for the obvious risk characteristics and the local economic factors. The results are robust to different empirical approaches. We also find that homeownership and occupation are important factors in ...
Working Papers , Paper 20-15

Discussion Paper
Charging into Adulthood: Credit Cards and Young Consumers

The New York Fed’s Center for Microeconomic Data today released the Quarterly Report on Household Debt and Credit for the fourth quarter of 2019. Total household debt balances grew by $193 billion in the fourth quarter, marking a $601 billion increase in household debt balances in 2019, the largest annual gain since 2007. The main driver was a $433 billion annual upswing in mortgage balances, also the largest since 2007. Auto loan and credit card balances both increased by a brisk $57 billion last year, while student loan balances climbed by a more muted $51 billion, well below the $114 ...
Liberty Street Economics , Paper 20200211

Discussion Paper
Following Borrowers through Forbearance

Today, the New York Fed’s Center for Microeconomic Data reported that total household debt balances increased slightly in the third quarter of 2020, according to the latest Quarterly Report on Household Debt and Credit. This increase marked a reversal from the modest decline in the second quarter of 2020, a downturn driven by a sharp contraction in credit card balances. In the third quarter, credit card balances declined again, even as consumer spending recovered somewhat; meanwhile, mortgage originations came in at a robust $1.049 trillion, the highest level since 2003. Many of the efforts ...
Liberty Street Economics , Paper 20201117

Dirty air from wildfires casts a cloud over household finances

Using California's Camp Fire as a natural laboratory, this article examines the effects of both fire and smoke-related air pollution on household credit card spending and repayment.
Dallas Fed Economics

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Van der Klaauw, Wilbert 25 items

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