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008			100416s2009 xx ||||gr |0|| 0 eng d
100	1		_aAN, Xudong _939463
245	1	0	_aPolicy incentives and the extension of mortage credit : _bincreasing market discipline for subprime lending
260			_aHoboken : _bWiley-Blackwell, _cSummer 2009
520	3		_aThe lax underwriting in non-prime mortgage markets is widely perceived as one cause of the recent difficulties in the housing market. Policymakers are currently considering moves such as enforcing more careful underwriting to provide additional discipline to mortgage markets. This research explores the possibility of another approach to supplement or replace some of these efforts, namely the use of policy to create incentives for Fannie Mae and Freddie Mac (together, the GSEs) to help check behavior in non-prime markets. The hypothesis is that the GSE Act affordable housing goals have increased GSE focus on targeted loan purchases, which in turn has led prime market lenders to compete more aggressively for borrowers on the margin between prime and subprime credit quality. As a consequence, these marginal borrowers will be more inclined to take prime mortgages rather than higher-cost subprime loans. We test this hypothesis and find empirical support for it. We observe a negative relationship between the growth in GSE market share and the growth in subprime market share over time, and find that the impact of the GSEs on subprime lending tends to be stronger in high-minority neighborhoods, where subprime lending has been concentrated and growing the fastest. Simulations show that a 10 percent increase in GSE market share (for example, from 20 to 22 percent) can cause 45,000 borrowers using prime instead of subprime loans a cost savings of about $1.7 billion. These results suggest that the GSEs, regardless of their postconservatorship form, should continue to devote attention to serving underserved populations and suggest that significant welfare benefits will accrue. © 2009 by the Association for Public Policy Analysis and Management.
700	1		_aBOSTIC, Raphael W. _939464
773	0	8	_tJournal of Policy Analysis and Management _g28, 3, p. 340-365 _dHoboken : Wiley-Blackwell, Summer 2009 _xISSN 02768739 _w
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998			_a20100416 _b0923^b _cDaiane
998			_a20100420 _b1532^b _cCarolina
999			_aConvertido do Formato PHL _bPHL2MARC21 1.1 _c32377 _d32377
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