Search Results
Showing results 1 to 10 of approximately 70.
(refine search)
Report
Racial Differences in Mortgage Refinancing, Distress, and Housing Wealth Accumulation during COVID-19
Gerardi, Kristopher S.; Lambie-Hanson, Lauren; Willen, Paul S.
(2021-06-22)
The COVID-19 pandemic exacerbated racial disparities in U.S. mortgage markets. Black, Hispanic, and Asian borrowers were significantly more likely than white borrowers to miss payments due to financial distress, and significantly less likely to refinance to take advantage of the large decline in interest rates spurred by the Federal Reserve’s large-scale mortgage-backed security (MBS) purchase program. The wide-scale forbearance program, introduced by the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, provided approximately equal payment relief to all distressed borrowers, ...
Current Policy Perspectives
Working Paper
A Quantitative Theory of the Credit Score
Dempsey, Kyle; Corbae, Dean; Rios-Rull, Jose-Victor; Chatterjee, Satyajit
(2020-09-30)
What is the role of credit scores in credit markets? We argue that it is a stand-in for a market assessment of a person’s unobservable type (which here we take to be patience). We pose a model of persistent hidden types where observable actions shape the public assessment of a person’s type via Bayesian updating. We show how dynamic reputation can incentivize repayment without monetary costs of default beyond the administrative cost of filing for bankruptcy. Importantly, we show how an economy with credit scores implements the same equilibrium allocation. We estimate the model using both ...
Working Papers
, Paper 20-39
Working Paper
The Impact of Minority Representation at Mortgage Lenders
Frame, W. Scott; Huang, Ruidi; Mayer, Erik J.; Sunderam, Adi
(2022-06-21)
We study links between the labor market for loan officers and access to mortgage credit. Using novel data matching the (near) universe of mortgage applications to loan officers, we find that minorities are significantly underrepresented among loan officers. Minority borrowers are less likely to complete mortgage applications, have completed applications approved, and to ultimately take-up a loan. These disparities are significantly reduced when minority borrowers work with minority loan officers. Minority borrowers working with minority loan officers also have lower default rates. Our results ...
Working Papers
, Paper 2207
Working Paper
Who Pays For Your Rewards? Redistribution in the Credit Card Market
Agarwal, Sumit; Presbitero, Andrea F.; Silva, André F.; Wix, Carlo
(2023-01-20)
We study credit card rewards as an ideal laboratory to quantify redistribution between consumers in retail financial markets. Comparing cards with and without rewards, we find that, regardless of income, sophisticated individuals profit from reward credit cards at the expense of naive consumers. To probe the underlying mechanisms, we exploit bank-initiated account limit increases at the card level and show that reward cards induce more spending, leaving naive consumers with higher unpaid balances. Naive consumers also follow a sub-optimal balance-matching heuristic when repaying their credit ...
Finance and Economics Discussion Series
, Paper 2023-007
Working Paper
Saving and Wealth Accumulation among Student Loan Borrowers: Implications for Retirement Preparedness
Dettling, Lisa J.; Goodman, Sarena F.; Reber, Sarah
(2022-04-01)
Borrowing for education has increased rapidly in the past several decades, such that the majority of non-housing debt on US households' balance sheets is now student loan debt. This chapter analyzes the implications of student loan borrowing for later-life economic well-being, with a focus on retirement preparation. We demonstrate that families holding student loan debt later in life have less savings than their similarly educated peers without such debt. However, these comparisons are misleading if the goal is to characterize the experience of the typical student borrower, as they fail to ...
Finance and Economics Discussion Series
, Paper 2022-019
Report
Lessons Learned from Mortgage Borrower Policies and Outcomes during the COVID-19 Pandemic
Gerardi, Kristopher S.; Lambie-Hanson, Lauren; Willen, Paul S.
(2022-07-07)
This article reviews the aid offered to the roughly 50 million homeowners with mortgages included in a forbearance program, and the Federal Reserve’s actions that pushed down mortgage rates, allowing many mortgage holders to reduce their monthly payments by refinancing. We deem these policies to be quite effective in relieving financial distress and allowing homeowners to stay in their homes, especially in contrast with the policies pursued during the Great Recession. We emphasize that these policies in part worked because of rising housing prices and home equity, before and during the ...
Current Policy Perspectives
Discussion Paper
The Fed’s Balance Sheet Runoff: The Role of Levered NBFIs and Households
Cipriani, Marco; Clouse, James A.; Logan, Lorie; Martin, Antoine; Riordan, Will
(2022-04-12)
In a Liberty Street Economics post that appeared yesterday, we described the mechanics of the Federal Reserve’s balance sheet “runoff” when newly issued Treasury securities are purchased by banks and money market funds (MMFs). The same mechanics would largely hold true when mortgage-backed securities (MBS) are purchased by banks. In this post, we show what happens when newly issued Treasury securities are purchased by levered nonbank financial institutions (NBFIs)—such as hedge funds or nonbank dealers—and by households.
Liberty Street Economics
, Paper 20220412
Discussion Paper
Evaluating the Benefits of a Streamlined Refinance Program
Willen, Paul S.; Gerardi, Kristopher S.; Loewenstein, Lara
(2020-06-25)
Mortgage borrowers who have experienced employment disruptions as a result of the COVID-19 pandemic are unable to refinance their loans to take advantage of historically low market rates. In this article, we analyze the effects of a streamlined refinance ("refi") program for government-insured loans that would allow borrowers to refinance without needing to document employment or income. In addition, we consider a cash-out component that would allow borrowers to extract some of the substantial amount of housing equity that many have accumulated in recent years.
Policy Hub
, Paper 2020-08
Working Paper
Financial Repercussions of SNAP Work Requirements
Dodini, Samuel; Larrimore, Jeff; Tranfaglia, Anna
(2022-05-24)
This paper considers the credit response of individuals after the implementation of new work requirements for Supplemental Nutrition Assistance (SNAP) benefits using a large nationally representative sample of credit records. It does so by exploiting county-level variation in the implementation of work requirements after the Great Recession in a difference-in-differences design. We find that the implementation of new SNAP work requirements leads more people to seek out new credit and leads to an increase in credit account openings. New work requirements also result in an increase in total ...
Finance and Economics Discussion Series
, Paper 2022-030
Discussion Paper
Consumer Credit Card Payment Deferrals During the COVID-19 Pandemic
Wilshusen, Stephanie M.
(2022-02-08)
In response to the economic hardships stemming from COVID-19, many U.S. card-issuing banks offered measures to assist their customers who were financially affected by the pandemic. Unlike previous disaster assistance programs that were typically short in duration and localized, the COVID-19 pandemic affected millions of consumers across the country for a protracted period of time and required application of broad-based relief measures. These measures, along with federal and state stimulus and benefit payments, provided some stability to many consumers’ financial circumstances during ...
Consumer Finance Institute discussion papers
FILTER BY year
FILTER BY Bank
Federal Reserve Bank of Philadelphia 19 items
Board of Governors of the Federal Reserve System (U.S.) 16 items
Federal Reserve Bank of Boston 10 items
Federal Reserve Bank of Atlanta 9 items
Federal Reserve Bank of Dallas 4 items
Federal Reserve Bank of New York 4 items
Federal Reserve Bank of Chicago 3 items
Federal Reserve Bank of Cleveland 2 items
Federal Reserve Bank of Kansas City 2 items
Federal Reserve Bank of Minneapolis 1 items
show more (5)
show less
FILTER BY Series
Working Papers 29 items
Finance and Economics Discussion Series 15 items
Policy Hub 5 items
Current Policy Perspectives 4 items
FRB Atlanta Working Paper 4 items
Consumer Finance Institute discussion papers 3 items
Chicago Fed Letter 2 items
Liberty Street Economics 2 items
Staff Reports 2 items
International Finance Discussion Papers 1 items
Macro Bulletin 1 items
Research Working Paper 1 items
Working Paper Series 1 items
show more (8)
show less
FILTER BY Content Type
Working Paper 51 items
Discussion Paper 8 items
Report 6 items
Journal Article 3 items
Newsletter 2 items
FILTER BY Author
Willen, Paul S. 10 items
Gerardi, Kristopher S. 9 items
Lambie-Hanson, Lauren 8 items
Blascak, Nathan 5 items
Agarwal, Sumit 3 items
Braun, R. Anton 3 items
Goodman, Sarena 3 items
Hannon, Simona 3 items
Hossain, Mallick 3 items
Isen, Adam 3 items
Mezza, Alvaro 3 items
Thompson, Jeffrey P. 3 items
Tranfaglia, Anna 3 items
Wix, Carlo 3 items
Zhang, David Hao 3 items
Bhutta, Neil 2 items
Biswas, Siddhartha 2 items
Brown, Jason 2 items
Chatterjee, Satyajit 2 items
Conklin, James 2 items
Corbae, Dean 2 items
D'Amico, Stefania 2 items
Dempsey, Kyle 2 items
Dettling, Lisa J. 2 items
Di, Wenhua 2 items
Gerardi, Kristopher 2 items
Ikeda, Daisuke 2 items
Loewenstein, Lara 2 items
Mikhed, Slava 2 items
Moore, Kevin B. 2 items
Presbitero, Andrea F. 2 items
Rios-Rull, Jose-Victor 2 items
Scholnick, Barry 2 items
Silva, André F. 2 items
Volz, Alice Henriques 2 items
Zhang, Man 2 items
Zink, David 2 items
Amromin, Gene 1 items
Anderson, Christopher 1 items
Antwi, Yaa Asoka 1 items
Aouad, Marion 1 items
Bagley, John 1 items
Bailey, James 1 items
Berkowitz, Daniel 1 items
Bernhardt, Robert 1 items
Best, James 1 items
Blair, Jacqueline 1 items
Boslett, Andrew J. 1 items
Bricker, Jesse 1 items
Carlson, Mark A. 1 items
Cipriani, Marco 1 items
Clouse, James A. 1 items
Dodini, Samuel 1 items
Dogra, Keshav 1 items
Dokko, Jane 1 items
Dolson, Erik 1 items
Dynan, Karen E. 1 items
Fletcher, Carla 1 items
Frame, W. Scott 1 items
Fritsch, Nicholas 1 items
Fuentes-Albero, Cristina 1 items
Fuster, Andreas 1 items
Gallagher, Emily 1 items
Goodman, Sarena F. 1 items
Gorton, Nicole 1 items
Grinstein-Weiss, Michal 1 items
Hall, Arden 1 items
Helppie-McFall, Brooke 1 items
Hizmo, Aurel 1 items
Horvath, Akos 1 items
Hsu, Joanne W. 1 items
Huang, Ruidi 1 items
Jacobs, Lindsay 1 items
Jagtiani, Julapa 1 items
Kartashova, Katya 1 items
Kay, Benjamin S. 1 items
Kehoe, Patrick J. 1 items
Koşar, Gizem 1 items
Lanning, Jonathan 1 items
Larrimore, Jeff 1 items
Lee, Sean Chanwook 1 items
Levine, Phillip B. 1 items
Livshits, Igor 1 items
Llanes, Elizabeth 1 items
Logan, Lorie 1 items
Lopez, Pierlauro 1 items
Maghzian, Omeed 1 items
Maingi, Ramain Quinn 1 items
Malmendier, Ulrike 1 items
Martin, Antoine 1 items
Mayer, Erik J. 1 items
Meursault, Vitaly 1 items
Midrigan, Virgiliu 1 items
Mikhed, Vyacheslav 1 items
Morelli, Juan M. 1 items
Moulton, Daniel 1 items
Moulton, Stephanie 1 items
Nee, Shawn 1 items
Palacios, Santiago I. Sordo 1 items
Pastorino, Elena 1 items
Pinkovskiy, Maxim L. 1 items
Raina, Sahil 1 items
Reber, Sarah 1 items
Riordan, Will 1 items
Ritter, Dubravka 1 items
Roll, Stephen 1 items
Rose, Jonathan D. 1 items
Santucci, Larry 1 items
Schlusche, Bernd 1 items
Schor, Nathan 1 items
Sharma, Eesha 1 items
Shen, Leslie Sheng 1 items
Smith, Kyle 1 items
Stavins, Joanna 1 items
Su, Yichen 1 items
Sunderam, Adi 1 items
Tousey, Colton 1 items
Tully, Stephanie 1 items
Van der Klaauw, Wilbert 1 items
Wang, Xiang 1 items
Wardius, Collin 1 items
Weber, Jeremy G. 1 items
Webster, Jeff 1 items
Wilshusen, Stephanie M. 1 items
Wood, Paul R. 1 items
Zhao, Bo 1 items
Zhou, Xiaoqing 1 items
show more (122)
show less
FILTER BY Jel Classification
G21 23 items
J15 15 items
D14 10 items
E52 10 items
E21 9 items
D31 7 items
G53 7 items
G28 6 items
D12 5 items
D15 5 items
I22 5 items
E62 4 items
G40 4 items
D61 3 items
D82 3 items
D91 3 items
E22 3 items
G11 3 items
G23 3 items
G50 3 items
I18 3 items
J13 3 items
D63 2 items
D83 2 items
E32 2 items
E43 2 items
E44 2 items
E50 2 items
G01 2 items
G12 2 items
G52 2 items
H74 2 items
H75 2 items
I13 2 items
I31 2 items
J16 2 items
Q54 2 items
R38 2 items
C38 1 items
C53 1 items
D04 1 items
D1 1 items
D10 1 items
D11 1 items
D86 1 items
E24 1 items
E3 1 items
E5 1 items
E58 1 items
G41 1 items
H31 1 items
H51 1 items
H53 1 items
H55 1 items
H84 1 items
I24 1 items
I38 1 items
J18 1 items
J2 1 items
J22 1 items
J24 1 items
J26 1 items
J32 1 items
J6 1 items
L62 1 items
Q33 1 items
Q59 1 items
R20 1 items
R21 1 items
show more (65)
show less
FILTER BY Keywords
Credit cards 9 items
Household finance 9 items
COVID-19 8 items
Consumer credit 8 items
home equity 7 items
mortgage 7 items
monetary policy 7 items
student loans 7 items
mortgage refinancing 6 items
mortgage repayment 5 items
racial inequality 5 items
default 4 items
race 4 items
refinance 4 items
Forbearance 4 items
Bankruptcy 3 items
Children 3 items
Pandemic 3 items
Consumer debt 3 items
Credit 3 items
Credit Scores 3 items
interest rates 3 items
mortgages 3 items
saving 3 items
Bond Market 2 items
Financial sophistication 2 items
Government Bonds 2 items
Great Recession 2 items
Local Government Bonds 2 items
Policy Effects 2 items
Rewards 2 items
Savings 2 items
Security Markets 2 items
Social Security 2 items
Stabilization 2 items
aging 2 items
cash-out 2 items
climate risk 2 items
consumer finance 2 items
household finances 2 items
housing wealth 2 items
lifecycle 2 items
nominal government debt 2 items
pensions 2 items
physical risk 2 items
portfolio choice 2 items
prepayment 2 items
prepayment risk 2 items
racial disparities 2 items
racial wealth gap 2 items
underinsurance 2 items
wealth inequality 2 items
wildfires 2 items
Auto Loans 2 items
Decomposition 2 items
Financial Literacy 2 items
Gender 2 items
Household consumption 2 items
Liquidity 2 items
Quantitative easing 2 items
Unsecured Consumer Credit 2 items
Wealth 2 items
Affordable Care Act 1 items
Asset pricing 1 items
Auto Debt 1 items
Auto Loan 1 items
Automobile 1 items
Balance sheet policy 1 items
Bank lending 1 items
Business Cycle 1 items
CARES Act 1 items
Center for Microeconomic Data 1 items
Central bank lending authority 1 items
College 1 items
Conspicuous Consumption 1 items
Consumer mistakes 1 items
Consumption-based asset pricing 1 items
Coronavirus 1 items
Credit easing 1 items
Credit supply 1 items
Creditworthiness 1 items
Emulation 1 items
Essential workers 1 items
Expectation 1 items
Experience effects 1 items
FAFSA 1 items
Fairness 1 items
Federal Reserve 1 items
Financial innovation 1 items
Group Disparities 1 items
Home Equity Conversion Mortgage 1 items
Home Mortgage Disclosure Act 1 items
Household Wealth 1 items
Household spending 1 items
Income shocks 1 items
Intertemporal CAPM 1 items
Investment 1 items
Limited Participation 1 items
Long-run risks 1 items
Machine Learning 1 items
Medicaid 1 items
Medicare expansion 1 items
Medicare reform 1 items
Non-Prime 1 items
P2P lending 1 items
Persistent Private Information. 1 items
Persistent private information 1 items
Price dispersion 1 items
Resource booms 1 items
Retirement 1 items
SNAP Benefits 1 items
Search 1 items
Shopping 1 items
Show Off 1 items
Social Security reform 1 items
Status 1 items
Stock Market 1 items
Student loan debt 1 items
Survey of Consumer Expectations 1 items
Survey of Consumer Expectations Public Policy Survey 1 items
Survey of consumer finances 1 items
Tobin effect 1 items
Vehicles 1 items
Wilbert van der Klaauw 1 items
Work Requirements 1 items
Yield curve control 1 items
alternative credit 1 items
approval 1 items
asset inequality 1 items
asset prices 1 items
balance sheet runoff 1 items
capital 1 items
cash-out refinancing 1 items
cash-out surcharge 1 items
collateral constraints 1 items
college access 1 items
consumer credit access 1 items
credit card utilization 1 items
credit constraints 1 items
credit offers 1 items
data misreporting 1 items
debt relief 1 items
default risk 1 items
deflation 1 items
delinquencies 1 items
delinquency and default 1 items
demographics 1 items
economic growth 1 items
economic psychology 1 items
employment 1 items
financial aid 1 items
financial crisis 1 items
financial decision-making 1 items
financial distress 1 items
financial recession 1 items
financial risk 1 items
fintech 1 items
fiscal policy 1 items
fraud 1 items
government transfers 1 items
health care 1 items
health insurance 1 items
heterogeneity 1 items
homeowner insurance 1 items
hospitals 1 items
household credit 1 items
household debt 1 items
household saving and borrowing 1 items
housing finance 1 items
inancial distress 1 items
income 1 items
inequality 1 items
information 1 items
intertemporal choice 1 items
labor market 1 items
labor supply 1 items
life-cycle savings patterns 1 items
lifecycle models 1 items
loan officers 1 items
man-made disasters 1 items
management 1 items
minimum wage policy 1 items
minority borrowers 1 items
minority serving institutions 1 items
mobility 1 items
money market funds (MMFs) 1 items
mortgage defaults 1 items
mortgage finance 1 items
mortgage forbearance 1 items
mortgage lending 1 items
mortgage markets 1 items
mortgage pricing discrimination 1 items
mortgage rates 1 items
myopia 1 items
natural disasters 1 items
nested logit model 1 items
nonbank financial institutions (NBFIs) 1 items
onetary Policy 1 items
online lending 1 items
output 1 items
parent PLUS 1 items
payment deferral 1 items
personal lending 1 items
portfolio composition 1 items
prices 1 items
property taxes 1 items
public policy outlook 1 items
racial wealth inequality 1 items
regression discontinuity 1 items
returns 1 items
returns to wealth 1 items
reverse mortgages 1 items
safety net 1 items
scarcity 1 items
secular stagnation 1 items
strategic default 1 items
student debt 1 items
subsidies 1 items
treasuries 1 items
wealth concentration 1 items
show more (237)
show less