Download This Paper

Open PDF in Browser

Add Paper to My Library

Human Capital and Local Credit Supply: Evidence from the Mortgage Industry

SMU Cox School of Business Research Paper No. 25-21

78 Pages Posted: 10 Sep 2025 Last revised: 5 Apr 2026

See all articles by Ruidi Huang

Ruidi Huang

Southern Methodist University (SMU) - Finance Department

Erik J. Mayer

University of Wisconsin-Madison, Finance Department

Sheridan Titman

University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)

David X Xu

Southern Methodist University (SMU) - Finance Department

Date Written: March 31, 2026

Abstract

This paper investigates how the spatial distribution of financial intermediaries’ human capital affects credit supply. Focusing on residential mortgage markets, we find that shocks to mortgage demand are not met with changes in the number of local loan officers, but instead affect workloads and remote lending. Importantly, evidence from shocks to the supply of loan officers shows these responses are not perfect substitutes for local intermediation. Local loan officers improve the availability of mortgage credit, the efficiency of the application process, and households’ refinancing outcomes. Our findings suggest that labor market frictions can distort local credit supply.

Suggested Citation: Suggested Citation

Huang, Ruidi and Mayer, Erik J. and Titman, Sheridan and Xu, David, Human Capital and Local Credit Supply: Evidence from the Mortgage Industry (March 31, 2026). SMU Cox School of Business Research Paper No. 25-21, Available at SSRN: https://ssrn.com/abstract=5467930 or http://dx.doi.org/10.2139/ssrn.5467930

Ruidi Huang (Contact Author)

Southern Methodist University (SMU) - Finance Department ( email )

United States

Erik J. Mayer

University of Wisconsin-Madison, Finance Department ( email )

975 University Avenue
Madison, WI 53706
United States

HOME PAGE: http://https://sites.google.com/site/erikjmayer/

Sheridan Titman

University of Texas at Austin - Department of Finance ( email )

Red McCombs School of Business
Austin, TX 78712
United States
512-232-2787 (Phone)
512-471-5073 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

David Xu

Southern Methodist University (SMU) - Finance Department ( email )

United States

Download This Paper

Open PDF in Browser

Do you have a job opening that you would like to promote on SSRN?

Place Job Opening

Paper statistics

Downloads

201

Abstract Views

743

Rank

399,431

PlumX Metrics

Feedback