How Do Regulators Influence Mortgage Risk? Evidence from an Emerging Market
32 Pages Posted: 14 Mar 2012
Date Written: March 14, 2012
This paper uses microeconomic data from India to explore the effects of rapidly changing regulation on mortgage lending and mortgage risk. We find evidence that regulation has important effects on rates and defaults. We also find evidence suggestive of learning by the mortgage provider in a turbulent regulatory environment.
Keywords: regulation, mortgage risk, defaults, learning
JEL Classification: G21, R21, R31
Suggested Citation: Suggested Citation