How Does Working in a Finance Profession Affect Mortgage Delinquency?

Posted: 25 Jan 2017

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Souphala Chomsisengphet

Office of the Comptroller of the Currency (OCC)

Yunqi Zhang

School of Finance, Nankai University; National University of Singapore

Multiple version iconThere are 2 versions of this paper

Date Written: January 23, 2017

Abstract

This paper uses a data set from a leading American subprime lender, which contains detailed information on borrower and loan characteristics. We find that financial professionals are less likely to become delinquent. This effect cannot be explained by borrower characteristics, such as income, education, loan terms, property characteristics, geographic effects, or strategic default. We also find variation in the effect of working in a financial profession across borrowers of different ages and income levels. We discuss explanations for these results.

Keywords: Mortgage, Financial crisis, Household finance, Financial professional

JEL Classification: D10, R20, G01, G21

Suggested Citation

Agarwal, Sumit and Chomsisengphet, Souphala and Zhang, Yunqi, How Does Working in a Finance Profession Affect Mortgage Delinquency? (January 23, 2017). Journal of Banking and Finance, Forthcoming; Georgetown McDonough School of Business Research Paper No. 2904846. Available at SSRN: https://ssrn.com/abstract=2904846

Sumit Agarwal

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Souphala Chomsisengphet

Office of the Comptroller of the Currency (OCC) ( email )

400 7th Street, SW
Washington, DC 20219
United States
202-649-5533 (Phone)

Yunqi Zhang (Contact Author)

School of Finance, Nankai University ( email )

38 Tongyan Road, Jinnan District
Tianjin, Tianjin 300350
China

National University of Singapore ( email )

4 Architecture Drive
Singapore, 117566
Singapore

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
549
PlumX Metrics