The Role of Intermediaries in Selection Markets: Evidence from Mortgage Lending

被引：0
|
作者：
Allen, Jason [1 ]
Clark, Robert [2 ]
Houde, Jean-Francois [1 ]
Li, Shaoteng [3 ]
Trubnikova, Anna [4 ]
机构：
[1] Univ Wisconsin, Madison, WI USA
[2] Queens Univ, Kingston, ON, Canada
[3] Bank Canada, Ottawa, ON, Canada
[4] Cornerstone Res, San Francisco, CA USA
来源：
REVIEW OF FINANCIAL STUDIES | 2024年
关键词：
INFORMATION; BROKERS; COMPETITION; SEARCH; DISPERSION; ADVICE; COSTS;
D O I：
10.1093/rfs/hhae075
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We study the role of brokers in selection markets. We find broker-clients in the Canadian mortgage market are observationally different from branch-clients. They finance larger loans with more leverage and longer amortization. We build and estimate a model of mortgage demand to disentangle three possible explanations for these riskier product choices: (1) selection on observables, (2) unobserved borrower preferences for riskier loans, and (3) a causal effect of brokers. Although we find that brokers influence product choices, the main reason borrowers choose high-leverage products is unobserved preferences. Borrowers prefer larger loans and brokers facilitate qualification for them.
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页数：45
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