Fintech and Network Economics in Real Estate: REWs and MLS As Policy Transmission Mechanisms, ‘Portfolio Screens’ and ‘Portfolio Frames’

Abstract

Multiple Listing Systems (MLS), Real Estate Website (REW) Laws, and Rent-Control and Rent-Stabilization statutes (RCRS) are un-constitutional and could have affected the transmission of monetary policy and fiscal policies, and the rapid changes in housing prices and housing demand which occurred in the US and other countries between 1995 and 2010. MLS and REWs are fintech systems that are used around the world. There is an increasing and symbiotic relationship between the un-constitutionality and anti-competition effects of MLS, Real Estate Websites (REWs) and RCRS on one hand, and systemic risk and financial stability. MLS, Real Estate Websites (REWs) and RCRS can have substantial effects on consumer behavior in credit and asset markets – and this can precipitate structural changes in the financial services, real estate and retailing industries. Hence, all existing housing-demand models and housing price forecast models are grossly mis-specified primarily because they don’t incorporate legal factors and associated economic effects.