Document Type

Article

Language

eng

Format of Original

37 p.

Publication Date

Summer 2008

Publisher

Wiley

Source Publication

Real Estate Economics

Source ISSN

1080-8620

Abstract

Various states and other local jurisdictions have enacted laws intending to reduce predatory and abusive lending in the subprime mortgage market. These laws have created substantial geographic variation in the regulation of mortgage credit. This article examines whether these laws are associated with a higher or lower cost of credit. Empirical results indicate that the laws are associated with at most a modest increase in cost. However, the impact depends on the product type. In particular, loans with fixed (adjustable) rates are associated with a modest increase (decrease) in cost.

Comments

Accepted version. Real Estate Economics, Vol. 36, No. 2 (Summer 2008): 175-211. DOI. © 2008 Wiley. Used with permission.

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