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作者

Minhong Xu;Yilan Xu

来源

REAL ESTATE ECONOMICS,Vol.48,Issue4,P.1096-1135

语言

英文

关键字

作者单位

Correspondence Minhong Xu and Yilan Xu. Email: mxu23@illinois.edu; yilanxu@illinois.edu;Correspondence Minhong Xu and Yilan Xu. Email: mxu23@illinois.edu; yilanxu@illinois.edu

摘要

This study examines the effects of pipeline hazards on credit risk using evidence from the 2005–2011 home mortgage loans in Texas. Difference‐in‐difference analyses show a permanently lower origination rate by 1.9% in the pipeline‐present areas compared to the pipeline‐free areas, which was further enlarged by 1.8% whenever pipeline incidents happened. Evidence suggests that the permanent difference in credit access reflects lenders’ concerns about collateral value and borrowers’ repayment ability. The elevated post‐incident risk perceptions indicate lenders’ aversion to environmental liabilities. Lenders’ risk management strategies differed by borrowers’ income and evolved with the tightening of the securitization market.