In this dissertation I study the effects of mortgage leverage policies. These policies have become widely used in recent years, both as a macroprudential tool and to protect consumers, yet their effects are still not well understood. In Chapter 1, I show that mortgage leverage rules implemented under the Dodd-Frank Act make it harder for households with business income to access mortgage credit, and reduce entrepreneurship. This chapter demonstrates a close connection between access to mortgage credit and entrepreneurship. In Chapter 2, I show that mortgage leverage rules strongly influence house prices, and that a relaxation of these rules explains a sizable share of the 2000s housing boom. This work is relevant for understanding the macroeconomic effects of changes in lending standards, and whether macroprudential policies will be effective. In Chapter 3, I study the effect of financial technology adoption and associated underwriting changes during the 1990s. I identify lenders who were among the first to adopt Freddie Mac's automated underwriting software and show that areas with greater exposure to these lenders experienced a large increase in house prices coinciding with software adoption.

Creator

• Johnson, Stephanie Georgina

DOI

• https://doi.org/10.21985/n2-nj1g-1t98

Subject

• Economics
• Finance

Language

• en

Alternate Identifier

• etdadmin_upload_662744
• http://dissertations.umi.com/northwestern:14658

Keyword

• mortgages
• entrepreneurship
• financial regulation
• house prices

Date created

• 2019-01-01

Resource type

• Dissertation

Rights statement

• In Copyright