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In some markets, offerings become riskier over time as producers introduce new versions that are made more affordable by increasing their risk. Existing theories suggest consumers adopt riskier versions either because they become more risk tolerant or they trade higher risk for lower price—both of which presume consumers know the risks. We reveal a third explanation: evolving market dynamics that increasingly encourage consumer inattention to risk and produce "collective ignorance." We identify factors of collective inattention and propose a three-stage model of development of collective ignorance by analyzing the case of risk buildup in the Hungarian mortgage market. Data include archival materials and interviews with borrowers, lenders, and regulators. Initially, producers offer low-risk products, and social, cultural, and institutional factors encourage attention to risk. Consumers attentive to and capable of assessing risk become early adopters. Over time, increasing adoption and changes in market factors divert consumers' attention from risk, shifting it to price. Under insufficient regulation, risk escalates: producers repeatedly cut price by offering increasingly risky products, while rising collective ignorance leads even risk-averse consumers to adopt them. We offer theoretical contributions to research on the social construction of risk, the attitude–behavior gap, and neoliberal responsibilization. [ABSTRACT FROM AUTHOR]

We study household credit responses to Hurricane Harvey using new, geographically granular data on credit cards, mortgages, and flooding. Estimates from a differences-in-differences design that exploits the flooding gradient show that affected households only borrow at low-interest rates, often using promotional (zero interest) cards and that they quickly pay down balances. We also document that take-up of forbearance (borrowing by missing mortgage payments without penalty) increases with flooding. These results are attenuated in floodplains, particularly in structures subject by code to physical hardening. Our results indicate that credit acts as a substitute for the lack of physical hardening. [ABSTRACT FROM AUTHOR]

We find that mortgage loans originated after the adoption of the inevitable disclosure doctrine (IDD; a mechanism discouraging loan officers' labor mobility) have a lower default probability, a higher loan modification rate, and a lower foreclosure rate. These effects are unaccompanied by any reduction in loan supply and contribute to more stable housing prices. Using the adoption of the Uniform Trade Secrets Act as an alternative identification generates consistent results. Overall, our findings suggest that restricting loan officers' labor mobility leads to better ex ante screening and ex post monitoring, improving the origination efficiency for U.S. residential mortgage loans. [ABSTRACT FROM AUTHOR]

Adverse market events can affect credit supply not only by hurting financial fundamentals but also by changing the risk-taking behaviors of individual decision-makers. We provide micro-level evidence of this individual decision-making channel in the U.S. mortgage market. We find that mortgage application rejection rates are more sensitive to foreclosure intensity when loan officers are more exposed to foreclosure news, despite the same housing market and bank fundamentals. Loans originated from the affected branches have lower ex post default rates, consistent with higher lending standards being applied. In the aggregate, this effect results in tighter credit supply during housing market downturns. [ABSTRACT FROM AUTHOR]

We identify two issues in the work of Ouazad and Kahn (2022). Correcting either reverses the original result. The two changes are to use the correct FHFA conforming loan limits for each county and year and to compare the individual loan amount to that limit correctly. There is no evidence that lenders transfer climate risk by altering loan origination and securitization behavior. None of our results calls into question the value and importance of the O&K model as a test for adverse selection. The question addressed and the setup of the test are important and should be replicated over time. [ABSTRACT FROM AUTHOR]

We analyze the distributional effects of macroprudential policy on mortgage cycles by exploiting the U.K. mortgage register and a 2014 15% limit imposed on lenders' high loan-to-income (LTI) mortgages. Constrained lenders issue fewer and more expensive high-LTI mortgages, with stronger effects on low-income borrowers. Unconstrained lenders strongly substitute high-LTI loans in local areas with higher constrained lender presence, but not high-LTI loans to low-income borrowers—consistent with adverse selection problems—implying lower overall credit to low-income borrowers. Consistently, policy-affected areas experience lower house price growth postregulation and, following the Brexit referendum (negative aggregate shock), better house price growth and lower mortgage defaults for low-income borrowers. [ABSTRACT FROM AUTHOR]

After exogenous demand shocks caused by natural disasters, FinTech lenders are more responsive to increased demand for reconstruction mortgages than traditional banks and non-FinTech shadow banks. Both FinTech and traditional banks increase credit supply, but FinTech supply is more elastic without increases in risk-adjusted interest rates or delinquency rates. Comparing lending supply channels, banks respond to regulatory incentives to lend to damaged areas, whereas FinTech lenders supply more credit when traditional banks rely more on balance sheet financing and physical branch networks. Compared to traditional banks, FinTech lenders increase supply elasticity more aggressively in response to local competitive pressure. [ABSTRACT FROM AUTHOR]

In order to achieve the sustainable development goals by 2030, countries have initiated many different policies and reform programmes. But currently, we cannot find an optimal solution. Even though, improving the policy system step by step remains the most effective choice. Using a pilot policy of emission right mortgage loan in China, we construct a DID method to investigate the innovation effect of green financial policy. We find that this pilot policy can significantly promote corporate innovation, and this positive effect is more pronounced in non-state-owned firms and low financial development regions. This study improves our understanding of how to maximize the value of corporate 'carbon assets' in the mortgage market. [ABSTRACT FROM AUTHOR]

Research over the past two decades has noted significant racial/ethnic wealth inequalities—inequalities with important implications for life chances and institutional access. Home ownership is as a foundational element of such inequality with broad consequences for exposure to crime, quality of public safety services, and access to healthcare, education, and employment. Building on earlier scholarship that has tended to focus on specific forms of mortgages, we draw in this article on over 1.4 million diverse mortgage applications from the largest 100 U.S. metropolitan areas to interrogate racial/ethnic disparities for (1) all home types (mobile homes, condominiums, multi/single-family units), (2) all lien holders (private/government backed), (3) all purposes (vacation/rental/owner-occupied), and (4) all buyer loan sequences (purchase, refinance, home-equity/improvement). Our analyses, which make use of multilevel modeling, reveal durable inequalities for African Americans and Hispanics across time and advantages for Non-Hispanic White and Asian-American applicants. Such disadvantages are likewise observed for those seeking housing in highly concentrated minority locales, although such effects seem to vary by applicant race/ethnicity. Specifically, mortgage originations, while generally less likely in high minority concentrated areas, appear to be more likely for Black/Hispanic borrowers in areas that have been becoming increasingly minority concentrated. Mortgage lending, we conclude, remains a deeply problematic dimension of racial/ethnic inequality with important consequences for persistent segregation, wealth disparities, and the intergenerational transmission of advantage/disadvantage. [ABSTRACT FROM AUTHOR]

I explore the real effects of an update in loan loss accounting, the current expected credit loss (CECL) model. Although CECL's predecessor only required banks to recognize losses after an event that made a loan uncollectible, CECL requires banks to recognize expected lifetime credit losses when originating loans. CECL's earlier recognition of loan losses increases the cost of reserving regulatory capital for loans, decreasing banks' willingness to lend. Empirically, I find that, following CECL's approval, capital-constrained banks reduce their growth of total loans and residential loans. I also find that, for the residential loans banks continue to make, they choose to sell more shortly after origination, increasing the size of their originate-to-distribute (OTD) business. The increase in OTD mortgages is more pronounced for public banks, implying that their need to adopt CECL earlier than private banks outweighs the fact that they have better access to additional capital. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G21; M40; M41. [ABSTRACT FROM AUTHOR]

AbstractShip arrest enables the detention of a ship that has caused damage or owes money without requiring a court judgment. Ship arrest protects the claimant from evasive actions by the shipowner, such as transferring the ship to another company and changing the flag and the ship’s name. The availability of ship arrest goes back several centuries. However, the People’s Republic of China (PRC) has developed its domestic ship arrest system over the past 30 years. This article examines quantitatively, for the first time, how the PRC system operates in practice. Between 2014 and 2022, more than 5000 ships were arrested in the PRC. For 2000 of these, court reports are available. Ship arrest operates primarily as security for domestic claims. About 88% of the ships arrested were PRC-flagged ships. Half of these were commercial ships arrested for claims of mortgages and loans, goods and services provided to the ship, and crew wages. About 92% of the foreign ships arrested were commercial ships. These were arrested primarily for provisions and services, and charterparty and cargo claims. The number of berths at the ports supervised by each maritime court correlates well with the number of ship arrests, indicating that the system operates uniformly across the PRC. The number of ship arrests has been declining since 2016. The number of ship arrests with respect to collision claims does not indicate a trend. Ship arrests for pollution claims are uncommon. However, the large number of ships immobilised by arrest poses an environmental issue of wasteful pollution, which needs attention. The significant number of PRC ships arrested reflects an important domestic effect of ship arrest which needs attention. [ABSTRACT FROM AUTHOR]

This study investigates the optimal mortgage level and examines the impact of urbanization on the risk of excessive mortgage loan in China's housing markets. We propose a new model to theoretically derive and measure both the optimal mortgage level and the degree of urbanization across different regions of China. The paper tests two hypotheses: first, whether urbanization directly increases the risk of excess mortgages, and second, whether urbanization indirectly contributes to this risk through its effect on housing prices. Using a fixed-effects model for panel data analysis, the generalized method of moments (GMM), and monthly data from 25 regional provinces in China spanning from 2007 to 2019, our results provide strong evidence in support of these hypotheses. The impact of urbanization varies across regions, suggesting that distinct policy interventions may be needed for different regional housing markets. [ABSTRACT FROM AUTHOR]

Mortgage discrimination alters the distribution of investment, opportunity, and economic advantage—key contributors of health disparities. Leveraging Home Mortgage Disclosure Act data, we assessed mortgage denial risk in 380 U.S. urban areas. We estimated the risks by census tract–relative to the urban-specific average—using a Bayesian spatial model with conditionally autoregressive distributions fitted with integrated nested Laplace approximation. This approach borrows information through spatial and non-spatial smoothing, resulting in stable estimates in the presence of sparse data. The method, publicly accessible, allows researchers to apply our approach, fostering deeper insights into mortgage lending discrimination and systematic neighborhood disinvestment. [ABSTRACT FROM AUTHOR]

We find the Small Business Administration's disaster-relief home loan program denies significantly more loans in areas with larger shares of minorities, subprime borrowers, and higher income inequality. We find that risk-insensitive loan pricing, a feature present in many regulated and government-run lending programs, is an important driver of these disparities in access to credit. The differences in denial rates are disproportionately high compared with private-market lending and government-insured risk-sensitive loan pricing programs. Thus, despite ensuring "fair" prices, the use of risk-insensitive pricing may lead to "unfair" access to credit. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2021.03199. [ABSTRACT FROM AUTHOR]

This study shows that monetary policy transmission in the United States has evolved considerably over the postwar period. Since the mid‐1980s, the effects of monetary policy on credit and housing markets have become much stronger relative to the impact on gross domestic product, while the effects on inflation have become weaker. We show that these changes in the relative effects of monetary policy can be explained by several important changes in the monetary transmission mechanism and in the composition of credit aggregates. Most notably, the increasing impact of monetary policy on credit was predominantly driven by an extraordinarily higher responsiveness of mortgage credit and a larger share of mortgages in total credit. These findings imply important changes over time in short‐term monetary policy trade‐offs between inflation and output stability on the one hand and between financial and macroeconomic stability on the other. [ABSTRACT FROM AUTHOR]

This study provides novel evidence regarding the effects of loan-to-value (LTV) limits on housing choices. Using a detailed loan-level dataset, I exploit the introduction of LTV limits in Israel. I find that the LTV limits led borrowers to choose housing units that were more affordable, farther from the central business district, and in lower socioeconomic neighborhoods. Additionally, these LTV limits increase interest rates and decrease loan amounts. The findings of this study indicate that macroprudential policies, which focus on the stability of the financial system, have micro implications on location choices, commuting costs, and movement to less-advantaged areas. [ABSTRACT FROM AUTHOR]

AbstractThis study explores the impact of New Deal-era redlining in the form of Home Owners Loan Corporation (HOLC) evaluations on the racial and ethnic makeup of U.S. cities decades later. We draw upon a sample of 172 cities across the United States from the Mapping Decline project and historical Census data collected by the Integrated Public Use Microdata Series (IPUMS) and the Longitudinal Tract Database (LTDB), addressing a gap in the literature by directly measuring whether the HOLC grades predict the subsequent local distribution of Black, Hispanic, and Asian populations. Our findings reveal a discernible yet diminishing connection between HOLC redlining and future Black populations, with the relationship with future Hispanic populations varying depending on whether the HOLC grade was a C or D. Only some correlation is observed between HOLC redlining and future Asian populations. This study highlights the intricate and evolving dynamics of race influenced by historical housing policies. [ABSTRACT FROM AUTHOR]

In the 1990s, securitised subprime loans supported the growth of mortgage lending. We study the evolution of initial mortgage rates as a function of loan and borrower characteristics during 1992–2015. We compare the evolution of initial rates on securitised subprime mortgages with rates of prime privately securitised mortgages, mortgages securitised by government‐sponsored enterprises, and nonsecuritised mortgages. Starting in 2003 the risk premium on subprime loans decreases until it disappears at the onset of the Global Financial Crisis. We find that loading factors on subprime rates are cointegrated with delinquencies and house price movements, providing evidence of the important role of the subprime market. [ABSTRACT FROM AUTHOR]

We study the relationship between credit expansions, macroeconomic fluctuations, and financial crises using a novel database on the sectoral distribution of private credit for 117 countries since 1940. We document that, during credit booms, credit flows disproportionately to the non-tradable sector. Credit expansions to the non-tradable sector, in turn, systematically predict subsequent growth slowdowns and financial crises. In contrast, credit expansions to the tradable sector are associated with sustained output and productivity growth without a higher risk of a financial crisis. To understand these patterns, we show that firms in the non-tradable sector tend to be smaller, more reliant on loans secured by real estate, and more likely to default during crises. Our findings are consistent with models in which credit booms to the non-tradable sector are driven by easy financing conditions and amplified by collateral feedbacks, contributing to increased financial fragility and a boom–bust cycle. [ABSTRACT FROM AUTHOR]

According to the uncertain geographic context problem, a lack of temporal information can hinder measures of bias in mortgage lending. This study extends previous methods to: (1) measure the persistence of racial bias in mortgage lending for Black Americans by adding temporal trends and credit scores, and (2) evaluate the continuity of bias in discriminatory areas from 1990 to 2020. These additions create an indicator of persistent structural housing discrimination. We studied the Boston-Cambridge-Newton and Dallas-Fort Worth metropolitan statistical areas to examine distinct historical trajectories and urban development. We estimated the odds of mortgage denial for census tracts. Overall, all tracts in Boston-Cambridge-Newton (N = 1003) and Dallas-Fort Worth (N = 1312) displayed significant change, with greater odds of bias over time in Dallas-Fort Worth and lower odds in Boston-Cambridge-Newton. Historically redlined areas displayed the strongest persistence of bias. Results suggest that temporal data can identify persistence and improve sensitivity in measuring neighborhood bias. Understanding the temporality of residential exposure can increase research rigor and inform policy to reduce the health effects of racial bias. [ABSTRACT FROM AUTHOR]

Copyright of Annales Historiques de la Révolution Française is the property of Librairie Armand Colin and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Housing markets display several correlations to multiple economic sectors of an economy. Their enormous impact on economies' health, wealth, and stability is uncontroversial. Interestingly, the forms of financing residential property vary widely between the different countries in terms of both, the available product types and the institutions offering them. This research examines the implications of different financial intermediaries on housing market cycles with special emphasis on two institutional types, conventional banks and building and loan associations. Introducing a heterogeneous agent-based model, the interactions of buyers, sellers, and the two types of credit institutions are assessed. Heterogeneous economic principles and expectations of agents create endogenous market conditions which are strongly influenced by the lending practices of financial intermediaries. Focusing primarily on collateral values to decide about lending, conventional banks may contribute to volatile housing markets which are prone to recessions. Building and loan associations, on the other hand, rely to a greater extent on endogenously created borrower information. Thus, they are able to cushion the volatility of house prices caused by procyclical mortgage lending of conventional banks and increase the stability of the housing market. Simulations show that the most stable market conditions are attained if both types of financial intermediaries serve the mortgage lending market jointly. Furthermore, transaction and homeownership rates are the highest in this market setting. These findings advocate in favor of diversified financial markets. [ABSTRACT FROM AUTHOR]

This study fills a significant research gap in Malaysian government-led homeownership and affordability. Centered on crucial market attributes influencing these initiatives, insights from low-income groups were obtained. The primary aim of this study was to assess the importance of various market attributes on government homeownership initiatives in Malaysia. The data were collected from low-income groups using a structured questionnaire, providing valuable insights into the unique challenges faced by this demographic. A Relative Importance Index (RII) was employed to analyze the data, revealing that Financial Market Factors, Household Financial Capacity, Housing Affordability and Accessibility, and Government Housing Policies were the market attributes of the highest importance in shaping government homeownership efforts. The results of the exploratory factor analysis demonstrated that the Financial Market Factor was the most influential component, as indicated by its mean rank. This study sought to incorporate the valuable perspectives of respondents regarding integrating future value into financing models. Respondents' opinions reflected a significant level of support for such innovative approaches. This study examines the crucial market attributes influencing government homeownership initiatives in Malaysia. The findings underline the potential of incorporating future value into financing models to enhance housing affordability for low-income groups and promote broader homeownership objectives. [ABSTRACT FROM AUTHOR]

Housing precarity as a condition referring to housing insecurity and unaffordability has been on the rise over the last decade across Europe and beyond. While various studies discuss the character of housing precarity and its links to (subprime) mortgage loans, the role of specific moral economies of debt in enacting housing policies which reinforce housing precarity is less developed in relation to other kinds of loans or the experience of debt enforcement. This article analyses fifty narrative interviews—thirty with debtors and twenty with institutional actors—and employs a processual methodology to highlight the performativity of personal debt and local housing policies. Performativity, enacted and modulated by moral economies of effort, (un)deservingness and (ir)responsibility, contributes to the remaking of housing precarity among indebted people, creating a vicious housing precarity-indebtedness loop. In the conclusion, we highlight the contingent and selective application of local housing policies which exclude the overindebted from municipal housing and discuss possible political and policy actions for overcoming the housing governance which generates this precarity. [ABSTRACT FROM AUTHOR]

This article makes a key contribution to the comparative political economy literature by accounting for the macroeconomic role of household finance. Based on post-Keynesian theories of finance and the financialization literature, we place house prices and mortgage credit squarely at the center of the macroeconomy, as speculative house price cycles can facilitate homeowner consumption via the use of equity release mortgages. Through an econometric evaluation of eighteen advanced economies from 1980 to 2019, we demonstrate that household debt is determined by house price inflation, and that rising household debt contributes to GDP growth, while business debt has negative growth effects. These results are consistent across countries with different growth models and financial systems. This suggests that the varieties of capitalism's focus on corporate finance is misplaced and that the growth models approach needs a theory of house prices, mortgage credit, and financial cycles to adequately conceptualize how debt-driven growth operates across advanced economies. [ABSTRACT FROM AUTHOR]

Using loan-level data, this analysis considers the intersection of race, subprime home loans, and the current vacancy crisis in St. Louis, Missouri. Borrowers in Black areas in the north of St. Louis City and St. Louis County received subprime home loans at higher frequencies during the subprime boom period of 2003–2007 than those in White areas, with differences in balloon loans especially stark. Specifically, borrowers in Black neighborhoods received subprime loans more frequently than those with equal FICO scores in White neighborhoods. As a result of these differential loan terms, North City and inner ring "First Suburb" areas saw more foreclosure and borrower payment delinquency, which in turn were highly associated with home vacancy, controlling for other risk factors. However, foreclosure was no longer a significant predictor of home vacancy after controlling for demographic factors and FICO score, indicating that the unequal loan terms may have driven much of the increase in home vacancy in the St. Louis area since the Great Recession. [ABSTRACT FROM AUTHOR]

Reporting entities have been made jointly responsible for protecting the financial system against money laundering. However, because of privacy rules, law enforcement is not allowed to share details about underlying criminal evidence with private parties. Gatekeepers thus do not have background information on predicate offenses or other criminal acts associated with a transaction, nor do they know whether their clients are individuals who the investigative authorities designate as professional money launderers (PLMs). At the same time, gatekeepers unknowingly come across such clients who, because of their financial behaviour or other reasons, are subsequently reported to the authorities. This article examines what we can learn from these reported transactions. It combines police registrations of 264 PMLs connected to drug trafficking with Suspicious Activity Reports filed by reporting entities. It turns out that over 5,000 reported transactions are connected to 68% of the PMLs. The study also shows several differences between categories of PMLs although recurring money laundering themes are cash money flow, loans and real estate. A key finding is that gatekeepers report more diffuse financial conduct compared to the literature about PMLs. [ABSTRACT FROM AUTHOR]

We assemble a property-level panel of appraiser-reported attributes associated with 4.6 million loan applications from 2013 to 2017 to test whether attributes were consistently reported. Appraisers have an incentive to misreport property attributes to justify higher appraised values to ensure that associated mortgage loans are approved. We focus on property transactions with multiple sets of attributes reported by the same appraiser within four quarters and find evidence consistent with an intent to inflate valuations through attribute misreporting. We find that strategic misreporting of attributes is prevalent across markets, and that highly leveraged borrowers whose appraisals had inconsistently reported attributes were 9.8 percent more likely to become seriously delinquent in their loan payments. [ABSTRACT FROM AUTHOR]

This study investigates banks' bubble assets, and the average interest rates applied to the consumer, housing, vehicle, and commercial loan types. Bubble formations by Phillips et al. are examined using the GSADF unit root test developed by (2015). The study period consists of weekly data for June 2019-March 2023. The Monte Carlo simulation obtained critical values for the GSADF unit root test. The findings show that the existence of a bubble effect in housing loan interest rates was found to be statistically significant at the 0.05 level. Against this, although a bubble effect in consumer, vehicle, and commercial loan interest rates has been determined, these bubbles are statistically insignificant. These findings indicate that the existence of bubbles in interest rates on housing loans is closely related to the demand for housing and the relevance of bubble financing to the basis of the bubble process. [ABSTRACT FROM AUTHOR]

The paper analyses the Loss Given Default (LGD) rates of residential mortgages, using a model based on stochastic collateral value. The implementation of the model is based on exponential Ornstein-Uhlenbeck processes fitted to the Hungarian regions' house price indices. According to the model results, in case of a mortgage with a 80% loan-to-value ratio at origination, the expected LGD is around 30–40%, depending on the region. The highest LGD rates are estimated for villages, while the lowest rates are expected in Budapest and cities in the middle of the country. The range of the regional differences can reach 7 percentage points. According to the LGD Risk index based on the aggregated model, the LGD risk profile of recently issued mortgages has improved significantly since 2009 in Hungary. Due to the strong negative relation between the house prices and mortgage default rates, the expected return on defaulted collateral value tends to be low. The results could be relevant for credit institutions in their mortgage origination decisions and enhance analysis of lending processes and the associated risks. [ABSTRACT FROM AUTHOR]

Copyright of Plan Canada is the property of Canadian Institute of Planners and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Until the 1970s, U.S. mortgage lenders commonly discounted half of the wife's income in couples' joint mortgage applications. This changed with the introduction of antidiscrimination legislation in the 1970s, providing a natural experiment to study the relaxation of income-related borrowing constraints. I study the effects of the reform by estimating difference-in-differences regressions and solving a simple calibrated life cycle model. I find substantial positive effects of the reform on mortgage borrowing and homeownership rates of married couples with working wives. Moreover, I find a positive effect on married women's labor force participation, which strongly amplifies the homeownership and borrowing effects. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

The widespread usage of machine learning systems and econometric methods in the credit domain has transformed the decision-making process for evaluating loan applications. Automated analysis of credit applications diminishes the subjectivity of the decision-making process. On the other hand, since machine learning is based on past decisions recorded in the financial institutions' datasets, the process very often consolidates existing bias and prejudice against groups defined by race, sex, sexual orientation, and other attributes. Therefore, the interest in identifying, preventing, and mitigating algorithmic discrimination has grown exponentially in many areas, such as Computer Science, Economics, Law, and Social Science. We conducted a comprehensive systematic literature review to understand (1) the research settings, including the discrimination theory foundation, the legal framework, and the applicable fairness metric; (2) the addressed issues and solutions; and (3) the open challenges for potential future research. We explored five sources: ACM Digital Library, Google Scholar, IEEE Digital Library, Springer Link, and Scopus. Following inclusion and exclusion criteria, we selected 78 papers written in English and published between 2017 and 2022. According to the meta-analysis of this literature survey, algorithmic discrimination has been addressed mainly by looking at the CS, Law, and Economics perspectives. There has been great interest in this topic in the financial area, especially the discrimination in providing access to the mortgage market and differential treatment (different fees, number of parcels, and interest rates). Most attention has been devoted to the potential discrimination due to bias in the dataset. Researchers are still only dealing with direct discrimination, addressed by algorithmic fairness, while indirect discrimination (structural discrimination) has not received the same attention. [ABSTRACT FROM AUTHOR]

Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In China, many Internet financial platforms (IFPs) are grappling with sustainability challenges due to elevated default rates, which have triggered widespread investor anxiety. To evaluate the sustainability practices of these platforms, we propose a reputation evaluation model designed to rank IFPs based on their sustainability. The economic sustainability of an IFP is decomposed into three components: scale strength, capital liquidity, and sustainable operating capability. Through an analysis of the correlation relationships between various indicators, we have identified nine significant indicators. Mathematical models are established to quantify these nine indicator variables. Subsequently, the score values of each indicator are integrated to establish a reputation evaluation model utilizing the weighted geometric mean method. Furthermore, the reputation evaluation values for 18 Chinese IFPs were calculated using the developed model, and the sustainability of the platforms was ranked according to the reputation evaluation value. A comparative analysis was also conducted between the sustainable rankings proposed in this study and the development rankings of the "Home of Online Loans" (HOL). The results reveal that our model effectively considers both the current operational strength and the sustainable development capability of the platform. It successfully identifies platforms with poor sustainability, assisting investors in making more informed decisions. Simultaneously, this study identifies key indicators influencing the sustainability of IFPs, providing valuable insights for managers seeking to enhance the sustainable operational levels of their platforms. [ABSTRACT FROM AUTHOR]

We document novel evidence on the spillover effect of a corporate control regulation on local mortgage markets. We find that banks directly targeted by the Sarbanes-Oxley Act (SOX) to rectify their internal control weaknesses reduce mortgage originations following the regulation's enactment. This causes mortgage credit to be reallocated toward other banks in the same local markets: while competing public banks expand lending to safer borrowers, private banks increase lending toward risky applicants. Consequently, loans originated by private banks in spillover counties report higher default rates. (JEL E51, G21, G38) [ABSTRACT FROM AUTHOR]

We introduce a new measure of the price charged by financial intermediaries for connecting mortgage borrowers with capital market investors. Based on administrative lender pricing data, we document that the price of intermediation reacts strongly to variation in demand, reflecting capacity constraints of mortgage originators. This positive comovement of price with quantity reduced the pass‐through of quantitative easing. We also find a notable upward trend in this price between 2008 and 2014, likely due to increased legal and regulatory burden in the mortgage market. The trend led to an implicit cost to borrowers of nearly $100 billion over this period. [ABSTRACT FROM AUTHOR]

We provide new evidence that mispriced mortgage insurance shifted credit supply and contributed to the mortgage boom and bust of the early 2000s. Original data on private mortgage insurance premiums from 1999 to 2016 reveal that before 2008, premiums did not vary across loans with widely different indicators of default risk. We quantify the mispricing of premiums before 2008 and show that even allowing for more optimistic beliefs, the flat premium structure resulted in cross‐subsidies and substantial adverse selection. [ABSTRACT FROM AUTHOR]