Collateral Valuation and Borrower Financial Constraints: Evidence from the Residential Real Estate Market
研究发现，财务受限的借款人会通过影响房产评估来增加贷款或降低利率，平均估值偏差超过5%，高杠杆交易偏差更大，且估值膨胀的贷款违约率更高。
Financially constrained borrowers have the incentive to influence the appraisal process in order to increase borrowing or reduce the interest rate. We document that the average valuation bias for residential refinance transactions is above 5%. The bias is larger for highly leveraged transactions, around critical leverage thresholds, and for transactions mediated through a broker. Mortgages with inflated valuations default more often. Lenders account for 60%–90% of the bias through pricing. This paper was accepted by Wei Jiang, finance.