How Does Working in a Finance Profession Affect Mortgage Delinquency?
Posted: 25 Jan 2017
Date Written: January 23, 2017
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
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