Did dubious mortgage origination practices distort house prices?
Publication
, Journal Article
Griffin, JM; Maturana, G
Published in: Review of Financial Studies
July 1, 2016
ZIP codes with high concentrations of originators who misreported mortgage information experienced a 75% larger relative increase in house prices from 2003 to 2006 and a 90% larger relative decrease from 2007 to 2012 compared with other ZIP codes. Several causality tests show that high fractions of dubious originators in a ZIP code lead to large price distortions. Originators with high misreporting gave credit to borrowers with high ex ante risk, yet further understated the borrowers' true risk. Overall, excess credit facilitated through dubious origination practices explain much of the regional variation in house prices over a decade.
Duke Scholars
Published In
Review of Financial Studies
DOI
EISSN
1465-7368
ISSN
0893-9454
Publication Date
July 1, 2016
Volume
29
Issue
7
Start / End Page
1671 / 1708
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
- 1401 Economic Theory
Citation
APA
Chicago
ICMJE
MLA
NLM
Griffin, J. M., & Maturana, G. (2016). Did dubious mortgage origination practices distort house prices? Review of Financial Studies, 29(7), 1671–1708. https://doi.org/10.1093/rfs/hhw013
Griffin, J. M., and G. Maturana. “Did dubious mortgage origination practices distort house prices?” Review of Financial Studies 29, no. 7 (July 1, 2016): 1671–1708. https://doi.org/10.1093/rfs/hhw013.
Griffin JM, Maturana G. Did dubious mortgage origination practices distort house prices? Review of Financial Studies. 2016 Jul 1;29(7):1671–708.
Griffin, J. M., and G. Maturana. “Did dubious mortgage origination practices distort house prices?” Review of Financial Studies, vol. 29, no. 7, July 2016, pp. 1671–708. Scopus, doi:10.1093/rfs/hhw013.
Griffin JM, Maturana G. Did dubious mortgage origination practices distort house prices? Review of Financial Studies. 2016 Jul 1;29(7):1671–1708.
Published In
Review of Financial Studies
DOI
EISSN
1465-7368
ISSN
0893-9454
Publication Date
July 1, 2016
Volume
29
Issue
7
Start / End Page
1671 / 1708
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
- 1401 Economic Theory