Auteurs Centres de recherche Disciplines et Collections Projets
Français English
 
 

Recourse and residential mortgages: The case of Nevada

 

Notice

Type:   Article
 
Titre:   Recourse and residential mortgages: The case of Nevada
 
Auteur(s):   Li, Wenli - Federal Reserve Bank of Philadelphia (Auteur)
Oswald, Florian - Département d'économie (Auteur)
 
In:   Journal of Urban Economics
 
Date de publication:   2017-09
 
Éditeur:   PAYS-BAS  :  Elsevier
 
Numéro:   101
 
Pages:   1-13  p.
 
ISSN:   00941190
 
DOI:   doi.org/10.1016/j.jue.2017.05.004
 
Mots-clés:   [en] Deficiency judgment, Default, Foreclosure, Approval, Interest rate, Nevada
 
JEL:   G21,  K11,  R20
 
Résumé:   [en] The state of Nevada passed legislation in 2009 that abolished deficiency judgments for purchase mortgage loans made after October 1, 2009, and collateralized by primary single-family homes. In this paper, we study how this change in the law affected equilibrium mortgage lending. Using unique mortgage loan-level application data and a difference-in-differences approach that exploits the qualification criterion, we find that the law change led to a decline in equilibrium loan sizes of about 1 to 2 percent. There exists some evidence that mortgage approval rates also decreased for the affected loan applications. These results suggest that making the deficiency judgment law more default friendly in Nevada generated material cost on borrowers at the time of mortgage origination.
 
 

Fichiers

Version Format Fichier Taille
Version de l'éditeur 09-2017-li-oswald-recourse-and-residential-mortgages.pdf 0,47 MB
 

Résolveur de liens