Competing for Deal Flow in Local Mortgage Markets
研究美国抵押贷款市场中，快速增长的小型竞争者如何分流其他贷款机构的申请和放贷，导致后者提高利率并面临更差的贷款绩效。
Abstract The U.S. mortgage market exhibits competitive instability in which some lenders rapidly emerge from the fringe to substantial market shares. Using inferred discontinuities in application acceptance models to generate local lending shocks, we analyze the impact on a lender of a surge in originations by its competitors. We show that the quickest-growing (but not the largest) competitors divert applications and originations from other lenders. Facing a quickly growing competitor, lenders charge higher interest rates, partially because of the increased risk of their loans. Loan performance suffers for other lenders as the quickest-growing competitor’s originations increase. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.