Know thyself: Access to own credit report and the retail mortgage market
Borrowers may misestimate their probability of mortgage approval in the absence of precise signals of creditworthiness. Credit reports, which contain such signals, became easily accessible for all U.S. consumers since 2005, while it was already the case in seven states. A difference-in-differences s...
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sg-smu-ink.lkcsb_research-80382022-08-02T08:01:12Z Know thyself: Access to own credit report and the retail mortgage market KUMAR, Amit Borrowers may misestimate their probability of mortgage approval in the absence of precise signals of creditworthiness. Credit reports, which contain such signals, became easily accessible for all U.S. consumers since 2005, while it was already the case in seven states. A difference-in-differences strategy exploiting this change shows that pool quality of mortgage applicants improved as a result—approvals increased, whereas subsequent delinquencies decreased. These findings are consistent with a mechanism where under-estimators enter the applicant pool and over-estimators drop out, because easier access to credit reports reduces misestimation of one’s own probability of mortgage approval. Additional findings rule out supply-driven explanations. 2022-06-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7039 info:doi/10.2139/ssrn.3732853 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8038/viewcontent/Amit_credit_report.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Credit Reports Information Provision to Consumers Household Finance Mortgages Regulation of Credit Information Finance and Financial Management |
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Credit Reports Information Provision to Consumers Household Finance Mortgages Regulation of Credit Information Finance and Financial Management KUMAR, Amit Know thyself: Access to own credit report and the retail mortgage market |
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Borrowers may misestimate their probability of mortgage approval in the absence of precise signals of creditworthiness. Credit reports, which contain such signals, became easily accessible for all U.S. consumers since 2005, while it was already the case in seven states. A difference-in-differences strategy exploiting this change shows that pool quality of mortgage applicants improved as a result—approvals increased, whereas subsequent delinquencies decreased. These findings are consistent with a mechanism where under-estimators enter the applicant pool and over-estimators drop out, because easier access to credit reports reduces misestimation of one’s own probability of mortgage approval. Additional findings rule out supply-driven explanations. |
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text |
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KUMAR, Amit |
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KUMAR, Amit |
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KUMAR, Amit |
title |
Know thyself: Access to own credit report and the retail mortgage market |
title_short |
Know thyself: Access to own credit report and the retail mortgage market |
title_full |
Know thyself: Access to own credit report and the retail mortgage market |
title_fullStr |
Know thyself: Access to own credit report and the retail mortgage market |
title_full_unstemmed |
Know thyself: Access to own credit report and the retail mortgage market |
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know thyself: access to own credit report and the retail mortgage market |
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Institutional Knowledge at Singapore Management University |
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2022 |
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https://ink.library.smu.edu.sg/lkcsb_research/7039 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8038/viewcontent/Amit_credit_report.pdf |
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