Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266113 
Year of Publication: 
2022
Series/Report no.: 
Staff Report No. 1029
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
The 2010s saw a profound shift towards jumbo mortgage lending by large banks that are regulated under the Dodd-Frank Act. Using data from the Home Mortgage Disclosure Act, we show that the "jumbo shift" is correlated with being subject to the Comprehensive Capital Analysis and Review (CCAR) stress tests, and that financial regulation caused CCAR-regulated banks to change preference for nonconforming relative to conforming loans of similar size. We discuss potential mechanisms through which regulation could have affected bank incentives.
Subjects: 
CCAR
mortgage lending
bunching
JEL: 
C23
G21
G28
Document Type: 
Working Paper

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