Does CFPB Oversight Crimp Credit?
Matthew Plosser and
James Vickery ()
Authors registered in the RePEc Author Service: Andreas Fuster
No 15681, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
We study how regulatory oversight by the Consumer Financial Protection Bureau (CFPB) affects mortgage credit supply and other aspects of bank behavior. We use a difference-in-differences approach exploiting changes in regulatory intensity and a size cutoff below which banks are exempt from CFPB scrutiny. CFPB oversight leads to a reduction in lending in the Federal Housing Administration (FHA) market, which primarily serves riskier borrowers. However, it is also associated with a lower transition probability from moderate to serious delinquency, suggesting that tighter regulatory oversight may reduce foreclosures. Our results underscore the trade-off between protecting borrowers and maintaining access to credit.
Keywords: Consumer financial protection; Regulation; Mortgages; Servicing; Credit supply (search for similar items in EconPapers)
JEL-codes: D18 G21 G28 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
https://cepr.org/publications/DP15681 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
Working Paper: Does CFPB Oversight Crimp Credit? (2020)
Working Paper: Does CFPB Oversight Crimp Credit? (2018) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:15681
Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP15681
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().