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作者

来源

REAL ESTATE ECONOMICS,Vol.45,Issue2,P.376-414

语言

英文

关键字

INFORMATION; PREPAYMENT; PROBIT; INCOME

作者单位

[Conklin, James N.] Univ Georgia, Terry Coll Business, Athens, GA 30602 USA. Conklin, JN (reprint author), Univ Georgia, Terry Coll Business, Athens, GA 30602 USA. E-Mail: jnc152@uga.edu

摘要

This article examines the relationship between broker-borrower interaction in the origination process and subsequent mortgage performance. I show that face-to-face interaction between a mortgage broker and borrower before the loan funds is associated with lower levels of ex postdefault. The relation between face-to-face broker-borrower interaction and mortgage performance holds only for borrowers that have characteristics associated with low levels of financial literacy. Specifically, face-to-face interaction is negatively related to default for minorities, borrowers located in areas with low levels of education, low-income borrowers and borrowers with low FICO scores. My results suggest that face-to-face interaction between the mortgage broker and borrower may reduce problems associated with financial illiteracy.