The authors’ findings indicate that homebuilder financing affiliates do make loans to observably riskier borrowers, but the loans made by homebuilders have lower delinquency rates than those made by unaffiliated lenders, even when loan and borrower characteristics are held constant.
On This Page: Vol. 38, Second Quarter, 2014
Homebuilders, Affiliated Financing Arms and the Mortgage Crisis
Last Updated: 05/29/14