scholarly journals How Resilient Is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic

2021 ◽  
Author(s):  
Andreas Fuster ◽  
Aurel Hizmo ◽  
Lauren Lambie-Hanson ◽  
James Vickery ◽  
Paul Willen
Keyword(s):  
Credit Supply ◽  
Mortgage Credit

scholarly journals Borrower Self-Selection, Underwriting Costs, and Subprime Mortgage Credit Supply

2005 ◽  
Vol 30 (2) ◽  
pp. 197-219 ◽  
Author(s):  
Joseph Nichols ◽  
Anthony Pennington-Cross ◽  
Anthony Yezer
Keyword(s):  
Subprime Mortgage ◽  
Credit Supply ◽  
Self Selection ◽  
Mortgage Credit

scholarly journals How Resilient Is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic

2021 ◽  
Vol 2021 (044) ◽  
pp. 1-52
Author(s):  
Andreas Fuster ◽  
◽  
Aurel Hizmo ◽  
Lauren Lambie-Hanson ◽  
James Vickery ◽  
...  
Keyword(s):  
Federal Reserve ◽  
Default Risk ◽  
Mortgage Market ◽  
Present Evidence ◽  
Credit Supply ◽  
Mortgage Credit ◽  
Mortgage Backed Securities ◽  
Historical Relationship ◽  
Pass Through ◽  
Sustained Increase

We study the evolution of USmortgage credit supply during the COVID-19 pandemic. Although the mortgage market experienced a historic boom in 2020, we show there was also a large and sustained increase in intermediation markups that limited the pass-through of lowrates to borrowers. Markups typically rise during periods of peak demand, but this historical relationship explains only part of the large increase during the pandemic. We present evidence that pandemic-related labor market frictions and operational bottlenecks contributed to unusually inelastic credit supply, and that technology-based lenders, likely less constrained by these frictions, gained market share. Rising forbearance and default risk did not significantly affect rates on “plainvanilla” conforming mortgages, but it did lead to higher spreads on mortgages without government guarantees and loans to the riskiest borrowers. Mortgage-backed securities purchases by the Federal Reserve also supported the flow of credit in the conforming segment.

scholarly journals How Resilient Is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic

2021 ◽  
Author(s):  
Andreas Fuster ◽  
Aurel Hizmo ◽  
Lauren Lambie-Hanson ◽  
James Ian Vickery ◽  
Paul S. Willen
Keyword(s):  
Credit Supply ◽  
Mortgage Credit

scholarly journals Credit Supply and Housing Speculation

2021 ◽  
Author(s):  
Atif Mian ◽  
Amir Sufi
Keyword(s):  
House Price ◽  
Private Label ◽  
Credit Supply ◽  
Mortgage Credit ◽  
Mortgage Securitization ◽  
Large Expansion ◽  
Housing Boom ◽  
Belief Heterogeneity ◽  
Price Growth ◽  
Boom And Bust

Abstract Credit supply expansion boosts housing speculation and amplifies the housing cycle. The surge in private-label mortgage securitization in 2003 fueled a large expansion in mortgage credit supply by lenders financed with noncore deposits. Areas more exposed to these lenders experienced a large relative rise in transaction volume driven by a small group of speculators, and these areas simultaneously witnessed an amplified housing boom and bust. Consistent with the importance of belief heterogeneity, house price growth expectations of marginal buyers rose during the boom, while housing market pessimism among the general population increased.

Internet Appendix: How Resilient is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic

2021 ◽  
Author(s):  
Andreas Fuster ◽  
Aurel Hizmo ◽  
Lauren Lambie-Hanson ◽  
James Ian Vickery ◽  
Paul S. Willen
Keyword(s):  
Credit Supply ◽  
Mortgage Credit

scholarly journals Credit Supply and the Price of Housing

2015 ◽  
Vol 105 (3) ◽  
pp. 958-992 ◽  
Author(s):  
Giovanni Favara ◽  
Jean Imbs
Keyword(s):  
Instrumental Variable ◽  
Housing Stock ◽  
House Prices ◽  
Housing Demand ◽  
Housing Supply ◽  
Credit Expansion ◽  
Credit Supply ◽  
Mortgage Credit ◽  
Supply Shock ◽  
Rule Out

An exogenous expansion in mortgage credit has significant effects on house prices. This finding is established using US branching deregulations between 1994 and 2005 as instruments for credit. Credit increases for deregulated banks, but not in placebo samples. Such differential responses rule out demand-based explanations, and identify an exogenous credit supply shock. Because of geographic diver-sification, treated banks expand credit: housing demand increases, house prices rise, but to a lesser extent in areas with elastic housing supply, where the housing stock increases instead. In an instrumental variable sense, house prices are well explained by the credit expansion induced by deregulation. (JEL G21, G28, R21, R31)

Recourse to Non-Housing Assets and Mortgage Credit Supply

2014 ◽  
Author(s):  
Kanis Saengchote
Keyword(s):  
Credit Supply ◽  
Mortgage Credit ◽  
Housing Assets

Local Debt Inflexibility and the Transmission of Credit Supply Shocks

2012 ◽  
Author(s):  
Lei Zhang ◽  
Massimo Massa
Keyword(s):  
Credit Supply ◽  
Supply Shocks

Liquidity Management and Credit Supply at U.S. Banks

2014 ◽  
Author(s):  
Priyank Gandhi ◽  
Patrick Christian Kiefer
Keyword(s):  
Liquidity Management ◽  
Credit Supply
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