Did affordable housing mandates cause the subprime mortgage crisis

@article{Moulton2014DidAH,
  title={Did affordable housing mandates cause the subprime mortgage crisis},
  author={Shawn R. Moulton},
  journal={Journal of Housing Economics},
  year={2014},
  volume={24},
  pages={21-38}
}
Abstract The 1992 Federal Housing Enterprises Financial Safety and Soundness Act (GSE Act) mandated that a specified percentage of Fannie Mae and Freddie Mac purchases come from underserved populations. A number of prominent observers have pointed to the GSE Act as a root cause of the recent housing crisis. This paper evaluates the link between the GSE Act and relaxed mortgage market standards. Using loan application-level data from the Home Mortgage Disclosure Act, I analyze whether the GSE… Expand

Figures from this paper

Did Affordable Housing Legislation Contribute to the Subprime Securities Boom?
type="main"> We use a regression discontinuity approach and present new institutional evidence to investigate whether affordable housing policies influenced the market for securitized subprimeExpand
Did Affordable Housing Legislation Contribute to the Subprime Securities Boom?
No. In this paper we use a regression discontinuity approach to investigate whether affordable housing policies influenced origination or affected prices of subprime mortgages. We use mergedExpand
Evidence of Government Subsidy on Mortgage Rate and Default: Revisited
I empirically evaluate the subsidized default insurance policy (implemented through the guarantee for Government-Sponsored Enterprises) in the U.S. mortgage market. First, I find that the subsidy hasExpand
Relationship Between Loan Product, Loan Amount, and Foreclosure After the Subprime Lending Crisis
Relationship Between Loan Product, Loan Amount, and Foreclosure After the Subprime Lending Crisis by Vonetta C. Allen MBA, Webster University, 2008 BBA, Savannah State University, 2003 Doctoral StudyExpand
Appraisal Inflation and Private Mortgage Securitization
Lenders’ access to soft information on appraisal inflation could lead to adverse selection in private mortgage securitization. Combining a nationwide mortgage data with a real estate transaction dataExpand
A New Look at the U.S. Foreclosure Crisis: Panel Data Evidence of Prime and Subprime Lending
Much of our understanding about the U.S. foreclosure crisis is based on research focused exclusively on the subprime sector at the beginning of the housing bust. But subprime mortgages are aExpand
A New Look at the U.S. Foreclosure Crisis: Panel Data Evidence of Prime and Subprime Borrowers from 1997 to 2012
Utilizing new panel micro data on the ownership sequences of all types of borrowers from 1997-2012 leads to a reinterpretation of the U.S. foreclosure crisis as more of a prime, rather than aExpand
Got Hurt for What You Paid? Revisiting Government Subsidy in the U.S. Mortgage Market
I evaluate the subsidized default insurance policy (implemented through the guarantee for Government-Sponsored Enterprises, GSEs) in the U.S. mortgage market both empirically and theoretically.Expand
US Housing Policy
Governments throughout the world intervene heavily in housing markets, and most have multiple policies to pursue multiple goals. This chapter deals with two of the largest types of housing policiesExpand
An Analysis of Restrictions on Housing Purchases in China
In recent years, housing prices have increased rapidly in China. As a result, Chinese governments have taken measures to control prices. The most popular way is restrictions on housing purchases.Expand
...
1
2
...

References

SHOWING 1-10 OF 23 REFERENCES
The Government‐Sponsored Enterprises and the Mortgage Crisis: The Role of the Affordable Housing Goals
The U.S. mortgage crisis that began in 2007 generated questions about the role played by Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSEs), in its causes. Some have claimed thatExpand
Have the GSE affordable housing goals increased the supply of mortgage credit
Abstract In the 1980s, housing market analysts and policymakers were concerned that Freddie Mac and Fannie Mae were not adequately facilitating the financing of affordable housing for low- andExpand
GSE Loan Purchases, the FHA, and Housing Outcomes in Targeted, Low-Income Neighborhoods
This study conducts two tests to evaluate the effects of the GSE mortgage purchase goals on on homeownership, housing outcomes, and credit access among communities that are the focus of the 1992 GSEExpand
Giving credit where credit is due? the Community Reinvestment Act and mortgage lending in lower-income neighborhoods
I identify and quantify the mortgage supply effect of the Community Reinvestment Act (CRA), a law mandating that banks help provide credit in lower-income neighborhoods, by exploiting a discontinuityExpand
GSE Activity and Mortgage Supply in Lower-Income and Minority Neighborhoods: The Effect of the Affordable Housing Goals
I estimate the credit supply effect of the Underserved Areas Goal (UAG), which establishes GSE purchase goals for mortgages to lower-income and minority neighborhoods. Taking advantage ofExpand
THE GSEs' FUNDING OF AFFORDABLE LOANS: A 2000 UPDATE
The main purpose of this study is to assess the extent to which Fannie Mae and Freddie Mac are funding loans for low-income borrowers and others who historically have not been well served by theExpand
GSE Activity, FHA Feedback, and Implications for the Efficacy of the Affordable Housing Goals
There is a seeming paradox regarding the “affordable housing goals”: GSE activities in targeted communities have increased under the goals but there has been little measurable improvement in housingExpand
Mortgage Lending in Boston: Interpreting HMDA Data
The results of this study indicate that minority applicants, on average, do have greater debt burdens, higher loan-to-value ratios, and weaker credit histories and they are less likely to buyExpand
CHARACTERISTICS OF MORTGAGES PURCHASED BY FANNIE MAE AND FREDDIE MAC: 1996-97 UPDATE
This paper examines the mortgages purchased by Fannie Mae and Freddie Mac, the two major Government-Sponsored Enterprises (GSEs) in the conventional secondary mortgage market. The analyses focus onExpand
Subprime Mortgages: What, Where, and to Whom?
We explore the types of data used to characterize risky subprime lending and consider the geographic dispersion of subprime lending. First, we describe the strengths and weaknesses of three differentExpand
...
1
2
3
...