Title Do lenders make less-informed investments in high-growth housing markets? [electronic resource] / by Sophia Chen, Lev Ratnovski, and Yangfan Sun.
Imprint [Washington, D.C.] : International Monetary Fund, 2021.©2021
Author Chen, Sophia. author.
International Monetary Fund. issuing body.
Date 01-01-2021
Physical description 1 online resource (53 pages).
online resource
Series IMF working paper ; no. 21/151
IMF working paper ; no. 21/151.
Item WEB (Copy 1) INTERNET 1321962-1001 ONLINE
URL Full text available from the International Monetary Fund: https://www.imf.org/-/media/Files/Publications/WP/2021/English/wpiea2021151-print-pdf.ashx
Major subject Financial institutions
Residential property
Prices and charges
Minor subject Economic models
Overseas item
Notes "May 2021"
Includes bibliographical references.
ISBN 9781513573380
Abstract Nonlocal mortgage lenders with greater exposure to high-growth housing markets accept fewer loan applications in these markets and experience greater stock return volatility. When these lenders expand to high-growth markets, they also ration credit to a significantly greater degree than when they expand to other markets. Mean-variance analyses show that nonlocal lenders' exposure to high-growth markets is associated with more risk, more efficiency, and more return on mortgage portfolios. Overall, these results imply that expansion to high-growth markets leads to a decline in screening and riskier investment by nonlocal lenders, which may reflect a risk-return trade-off in their portfolio strategy.
LCN 1321962
Item ID 1321962-1001
Database Library Catalogue