Zusammenfassung
This paper studies the role of the Community Reinvestment Act (CRA) in the US housing boom-bust cycle. I find that the enhancement in CRA enforcement in 1998 increased the growth rate of mortgage lending by CRA-regulated banks to CRA-eligible census tracts. I show that during the boom period house price growth was higher in the eligible census tracts because of the shift in mortgage supply of regulated banks. Consequently, these census tracts experienced a worse housing bust. I find that CRA-induced mortgages went to borrowers with lower FICO scores and encountered more frequent delinquencies.
Schlagworte
the community reinvestment act, mortgage supply, house prices, homeownership
Thema
Financial Markets
Beziehungen
Forschungsdaten
JEL-Klassifizierung
Forschungsbereich
Thema
HMDA How Do Banks React to Catastrophic Events? Evidence from Hurricane Katrina Mortgage Supply and the US Housing Boom: The Role of the Community Reinvestment Act Mortgage Supply and the US Housing Boom: The Role of the Community Reinvestment Act Natural Disaster and Bank Stability: Evidence from the U.S. Financial System The geography of banks in the United States (1990-2020) FHFA US Census G28 Incentive-Based Capital Requirements Interbank Networks and Backdoor Bailouts: Benefiting from other Banks' Government Guarantees Endogenous Banks’ Networks, Cascades and Systemic Risk Hidden Gems and Borrowers with Dirty Little Secrets: Investment in Soft Information, Borrower Self-selection and Competition Systemic Risk in the Financial Sector: What Can We Learn from Option Markets? The Single Supervisory Mechanism – Panacea or Quack Banking Regulation? How do insured deposits affect bank risk? Evidence from the 2008 Emergency Economic Stabilization Act Monetary Policy Implementation in an Interbank Network: Effects on Systemic Risk Systemic Risk in an Interconnected Banking System with Endogenous Asset Markets Financial Regulation in the EU – Cross-Border Capital Flows, Systemic Risk and the European Banking Union as Reference Points for EU Financial Market Integration How Special Are They? – Targeting Systemic Risk by Regulating Shadow Banking The Limits of Model-Based Regulation Bank Networks: Contagion, Systemic Risk and Prudential Policy Banking Union and the Governance of Credit Institutions - A Legal Perspective Optimal Asset Allocation for Interconnected Life Insurers in the Low Interest Rate Environment Under Solvency Regulation The Effects of Contingent Convertible (CoCo) Bonds on Insurers’ Capital Requirements under Solvency II On the Impact of Leveraged Buyouts on Bank Systemic Risk Regulatory Influence on Market Conditions in the Banking Union Interbank Funding as Insurance Mechanism for (Persistent) Liquidity Shocks Insurance Activities and Systemic Risk Rent-Seeking in Elite Networks The Political Economy of Bank Bailouts Understanding the Shift from Micro to Macro-Prudential Thinking: A Discursive Network Analysis Bank Response To Higher Capital Requirements: Evidence From A Quasi-Natural Experiment Does feedback on personal investment success help? Social Centralization, Bank Integration and the Transmission of Lending Shocks International Banking Conglomerates and the Transmission of Lending Shocks Across Borders Too Complex to Work: A Critical Assessment of the Bail-in Tool under the European Bank Recovery and Resolution Regime Why MREL Won't Help Much Remarks on the German Regulation of Crowdfunding The Demand for Central Clearing: To Clear or Not to Clear, That is the Question Managing Excess Volatility: Design and Effectiveness of Circuit Breakers Coordination of Circuit Breakers? Volume Migration and Volatility Spillover in Fragmented Markets Regulation of Crowdfunding in Germany Financial Education for the Disadvantaged? A Review The Pitfalls of Central Clearing in the Presence of Systematic Risk Macroprudential Policy in the Lab What Drives Banks' Geographic Expansion? The Role of Locally Non-Diversifiable Risk Spillovers of Funding Dry-ups The Case for a Normatively Charged Approach to Regulating Shadow Banking - Multipolar Regulatory Dialogues as a Means to Detect Tail Risks and Preclude Regulatory Arbitrage Accounting for Financial Stability: Lessons from the Financial Crisis and Future Challenges The Disposition Effect in Boom and Bust Markets The carrot and the stick: Bank bailouts and the disciplining role of board appointments G21 Trust Me! I am a European Central Banker Systemic Risk and Sovereign Debt in the Euro Area Banks’ financial distress, lending supply and consumption expenditure Did Consumers Want Less Debt? Consumer Credit Demand versus Supply in the Wake of the 2008-2009 Financial Crisis Liquidity Coinsurance and Bank Capital Financial Incentives and Loan Officer Behavior: Multitasking and Allocation of Effort Under an Incomplete Contract Assessing Systemic Fragility – a Probabilistic Perspective Too Interconnected to Fail: A Survey of the Interbank Networks Literature Taking the Lead: When Non-Banks Arrange Syndicated Loans Multiplex interbank networks and systemic importance: An application to European data Competition in Treasury Auctions The Effect of Personal Financing Disruptions on Entrepreneurship Systemic risk for financial institutions of major petroleum-based economies: The role of oil The Long-Run Real Effects of Banking Crises: Firm-Level Investment Dynamics and the Role of Wage Rigidity P2P Lending versus Banks: Cream Skimming or Bottom Fishing? Bargaining with a Bank Incentive Effects from Write-down CoCo Bonds: An Empirical Analysis The Pricing Implications of Oligopolistic Securities Lending Market: A Beneficial Owner Perspective Client Involvement in Expert Advice: Antibiotics in Finance? Debt Holder Monitoring and Implicit Guarantees: Did the BRRD Improve Market Discipline? Smoking Hot Portfolios? Self-Control and Investor Decisions Smoking Hot Portfolios? Self-Control and Investor Decisions The Anatomy of the Euro Area Interest Rate Swap Market Buildings' Energy Efficiency and the Probability of Mortgage Default: The Dutch Case Financial Literacy and Self-Control in FinTech: Evidence from a Field Experiment on Online Consumer Borrowing Recapitalization, Bailout, and Long-run Welfare in a Dynamic Model of Banking When Should Retirees Tap Their Home Equity? P2P Lending versus Banks: Cream Skimming or Bottom Fishing? R21 Who Invests in Home Equity to Exempt Wealth from Bankruptcy? Housing Habits and Their Implications for Life-Cycle Consumption and Investment R31 Financial Institutions Spillover Effects among Financial Institutions: A State-Dependent Sensitivity Value-at-Risk Approach Bank Rescues and Bailout Expectations: The Erosion of Market Discipline During the Financial Crisis Measuring Ambiguity Aversion: A Systematic Experimental Approach The Effects of a Low Interest Rate Environment on Life Insurers Resolution Planning and Structural Bank Reform within the Banking Union A Stochastic Forward-Looking Model to Assess the Profitability and Solvency of European Insurers The Forward-looking Disclosures of Corporate Managers: Theory and Evidence Whatever it Takes: The Real Effects of Unconventional Monetary Policy Estimation and Model-Based Combination of Causality Networks Liquidity Premia in CDS Markets United in Diversity? The Relationship between Monetary Policy and Banking Supervision in the Banking Union All Economic Ideas are Equal, but Some are more Equal than Others: A Differentiated Perspective on Macroprudential Ideas and their Implementation Reviving the Shadow Banking Chain in Europe: Regulatory Agency, Technical Complexity and the Dynamics of Co-Habitation Portfolio Similarity and Asset Liquidation in the Insurance Industry Networks in Risk Spillovers: A Multivariate GARCH Perspective Topic - Financial Markets OTC Discount Does Austerity Pay Off? How Has Sovereign Bond Market Liquidity Changed? - An Illiquidity Spillover Analysis Lighting up the Dark: Liquidity in the German Corporate Bond Market Stock Price Crashes: Role of Slow-Moving Capital Central Bank-Driven Mispricing Abandon Ship: Deferred Compensation and Risk-Taking Incentives in Bad Times Sovereign Credit Risk, Liquidity, and ECB Intervention: Deus Ex Machina? Bank and Sovereign Debt Risk Connection Much Ado About Nothing: A Study of Differential Pricing and Liquidity of Short and Long Term Bonds Growth Options and Firm Valuation Measuring Sovereign Contagion in Europe OTC Discount The FOMC Risk Shift Paying for Market Liquidity: Competition and Incentives Designated Market Makers: Competition and Incentives Financing Conditions and Toxic Emissions The Missing Piece of the Puzzle: Liquidity Premiums in Inflation-Indexed Markets Asset Prices in General Equilibrium with Recursive Utility and Illiquidity Induced by Transactions Costs Mutual Excitation in Eurozone Sovereign CDS Collateral Eligibility of Corporate Debt in the Eurosystem Circuit Breakers – A Survey among International Trading Venues Direct and Indirect Risk-Taking Incentives of Inside Debt Spoilt for Choice: Order Routing Decisions in Fragmented Equity Markets Freedom of Contract and Financial Stability through the lens of the Legal Theory of Finance Financial Bridges and Network Communities Topic - Household Finance Control Thyself: Self-Control Failure and Household Wealth Financial Literacy and Socialist Education: Lessons from the German Reunification Social Security in an Analytically Tractable Overlapping Generations Model with Aggregate and Idiosyncratic Risk Endogenous Grids in Higher Dimensions: Delaunay Interpolation and Hybrid Methods A Life-Cycle Model with Ambiguous Survival Beliefs Endogenous Retirement Behavior of Heterogeneous Households Under Pension Reforms Financial education, literacy and investment attitudes Can Households See into the Future? Survey Evidence from the Netherlands Putting the Pension Back in 401(k) Plans: Optimal versus Default Longevity Income Annuities On the (ir)relevance of monetary incentives in risk preference elicitation experiments Consuming Dividends Aging and Pension Reform: Extending the Retirement Age and Human Capital Formation Exposure to the COVID-19 Stock Market Crash and its Effect on Household Expectations Shareholder Wealth vs. Stakeholder interests? Evidence from Code Compliance under the German Corporate Governance Code Will They Take the Money and Work? An Empirical Analysis of People’s Willingness to Delay Claiming Social Security Benefits for a Lump Sum Does sophistication affect long-term return expectations? Evidence from financial advisers' exam scores Stock Ownership and Political Behavior: Evidence from Demutualizations Explaining Intra-Monthly Consumption Patterns: The Timing of Income or the Timing of Consumption Commitments? Household Debt and Social Interactions Optimal Social Security Claiming Behavior under Lump Sum Incentives: Theory and Evidence Life Insurance and Demographic Change: An Empirical Analysis of Surrender Decisions Based on Panel Data Consumption Habits and Humps The Long-Term Distributional and Welfare Effects of Covid-19 School Closures Evaluating the Effectiveness of Policies Against a Pandemic On the Optimal Provision of Social Insurance Risk Taking, Preferences, and Beliefs: Evidence from Wuhan Motivated Beliefs and the Elderly's Compliance with COVID-19 Measures Older People’s Willingness to Delay Social Security Claiming Gender Differences in Financial Advice Asset Market Participation and Portfolio Choice Over the Life-Cycle The Impact of Temporal Framing on the Marginal Propensity to Consume Biases in Information Selection and Processing: Survey Evidence from the Pandemic Aggregate and Distributional Effects of Increasing Taxes on Top Income Earners Life Insurance Demand under Health Shock Risk Inflation Expectations and Choices of Households On the Distributive Effects of Inflation Optimists and Pessimists in (In)Complete Markets Job Loss Expectations, Durable Consumption and Household Finances: Evidence from Linked Survey Data Critical Illness Insurance in Life Cycle Portfolio Problems Optimal Taxes on Capital in the OLG Model with Uninsurable Idiosyncratic Income Risk Depressed Demand Time Preferences over the Life Cycle Implications of Money-Back Guarantees for Individual Retirement Accounts: Protection Then and Now An Experiment on Retail Payments Systems Cognition, Optimism and the Formation of Age-Dependent Survival Beliefs How Persistent Low Expected Returns Alter Optimal Life Cycle Saving, Investment, and Retirement Behavior Consumption and Wage Humps in a Life-Cycle Model with Education Consumption-Investment Problems with Stochastic Mortality Risk Rigid Wages and Contracts: Time- versus State-Dependent Wages in the Netherlands Higher-Order Income Risk over the Business Cycle: A Parametric Approach Incompatible European Partners? Cultural Predispositions and Household Financial Behavior Reputation, Honesty, and Cheating in Informal Milk Markets in India Does Product Familiarity Matter for Participation? Secular Stagnation? Growth, Asset Returns and Welfare in the Next Decades: First Results The Geography of Alternative Work Idiosyncratic Risk, Aggregate Risk, and the Welfare Effects of Social Security Pro-rich Inflation in Europe: Implications for the Measurement of Inequality The Impact of Long-Run Macroeconomic Experiences on Personality Topic - Stability and Regulation Quantifying Inertia in Retail Deposit Markets The Financing Dynamics of Newly Founded Firms The COVID-19 Shock and Equity Shortfall: Firm-Level Evidence from Ital Cross-Border Resolution of Global Banks Austerity Monetary Policy and Risk Taking Supranational Rules, National Discretion: Increasing Versus Inflating Regulatory Bank Capital? Financial Constraints, Newly Founded Firms and the Financial Crisis The Real Effects of Judicial Enforcement Exit Strategies Credit Scoring in SME Asset-Backed Securities: An Italian Case Study How Economics Got it Wrong: Formalism, Equilibrium Modelling and Pseudo-Optimization in Banking Regulatory Studies Volatility, Valuation Ratios, and Bubbles: An Empirical Measure of Market Sentiment
Download Working Papers Metadaten
