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  1. Journal of Financial Services Research
  2. Journal of Financial Services Research : Volume 49
  3. Journal of Financial Services Research : Volume 49, Issue 2-3, June 2016
  4. Transparency in the Mortgage Market
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Journal of Financial Services Research : Volume 51
Journal of Financial Services Research : Volume 50
Journal of Financial Services Research : Volume 49
Journal of Financial Services Research : Volume 49, Issue 2-3, June 2016
Enhancing Prudential Standards in Financial Regulations
A Review of Bank Funding Cost Differentials
The Corporate Complexity of Global Systemically Important Banks
Testing for Systemic Risk Using Stock Returns
A Top-down Approach to Stress-testing Banks
Transparency in the Mortgage Market
Securitization and Mortgage Default
Journal of Financial Services Research : Volume 49, Issue 1, February 2016
Journal of Financial Services Research : Volume 48
Journal of Financial Services Research : Volume 47
Journal of Financial Services Research : Volume 46
Journal of Financial Services Research : Volume 45
Journal of Financial Services Research : Volume 44
Journal of Financial Services Research : Volume 43
Journal of Financial Services Research : Volume 42
Journal of Financial Services Research : Volume 41
Journal of Financial Services Research : Volume 40
Journal of Financial Services Research : Volume 39
Journal of Financial Services Research : Volume 38
Journal of Financial Services Research : Volume 37
Journal of Financial Services Research : Volume 36
Journal of Financial Services Research : Volume 35
Journal of Financial Services Research : Volume 34
Journal of Financial Services Research : Volume 33
Journal of Financial Services Research : Volume 32
Journal of Financial Services Research : Volume 31
Journal of Financial Services Research : Volume 30
Journal of Financial Services Research : Volume 29
Journal of Financial Services Research : Volume 28
Journal of Financial Services Research : Volume 27
Journal of Financial Services Research : Volume 26
Journal of Financial Services Research : Volume 25
Journal of Financial Services Research : Volume 24
Journal of Financial Services Research : Volume 23
Journal of Financial Services Research : Volume 22
Journal of Financial Services Research : Volume 21
Journal of Financial Services Research : Volume 20
Journal of Financial Services Research : Volume 19
Journal of Financial Services Research : Volume 18
Journal of Financial Services Research : Volume 17
Journal of Financial Services Research : Volume 16
Journal of Financial Services Research : Volume 15
Journal of Financial Services Research : Volume 14
Journal of Financial Services Research : Volume 13
Journal of Financial Services Research : Volume 12
Journal of Financial Services Research : Volume 11

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Transparency in the Mortgage Market

Content Provider Springer Nature Link
Author Pavlov, Andrey Wachter, Susan Zevelev, Albert Alex
Copyright Year 2015
Abstract This paper studies the impact of transparency in the mortgage market on the underlying real estate market. We show that geographic transparency in the secondary mortgage market, which implies geographic risk based pricing in the primary market, can limit risk-sharing and make house prices more volatile. Ex ante, regions prefer opaque markets to enable insurance opportunities. We discuss the implications for risk based pricing and house price volatility more generally. In addition, we investigate the specific conditions under which competitive lenders would optimally choose to provide opaque lending, thus reducing volatility in the real estate market. We show that in general the opaque competitive equilibrium is not stable, and lenders have incentive to switch to transparent lending if one of the geographic regions has experienced a negative income shock. We propose market and regulatory mechanisms that make the opaque competitive equilibrium stable and insurance opportunities possible.
Starting Page 265
Ending Page 280
Page Count 16
File Format PDF
ISSN 09208550
Journal Journal of Financial Services Research
Volume Number 49
Issue Number 2-3
e-ISSN 15730735
Language English
Publisher Springer US
Publisher Date 2015-01-16
Publisher Place New York
Access Restriction One Nation One Subscription (ONOS)
Subject Keyword Housing finance Mortgage Transparency Opacity Real estate Insurance House price volatility Financial Services Macroeconomics/Monetary Economics//Financial Economics
Content Type Text
Resource Type Article
Subject Finance Accounting Economics and Econometrics
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