Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/206684
Authors: 
Saadi, Vahid
Year of Publication: 
2019
Series/Report no.: 
SAFE Working Paper No. 155
Abstract: 
This paper studies the role of the Community Reinvestment Act (CRA) in the US housing boom-bust cycle. I find that the enhancement in CRA enforcement in 1998 increased the growth rate of mortgage lending by CRA-regulated banks to CRA-eligible census tracts. I show that during the boom period house price growth was higher in the eligible census tracts because of the shift in mortgage supply of regulated banks. Consequently, these census tracts experienced a worse housing bust. I find that CRA-induced mortgages went to borrowers with lower FICO scores and encountered more frequent delinquencies.
Subjects: 
The Community Reinvestment Act
Mortgage supply
House prices
Homeownership
JEL: 
G28
G21
R21
R31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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