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Banks Vs Shadow Banks: Evidence From The 2015 Fha Mortgage Insurance Premium Cut, Pornteera Tungtrakul Jefferson
Banks Vs Shadow Banks: Evidence From The 2015 Fha Mortgage Insurance Premium Cut, Pornteera Tungtrakul Jefferson
Doctor of Business Administration Dissertations
My paper uses the 2015 surprise mortgage insurance premium (MIP) cut in the FHA loan market to study banks’ and shadow banks’ role in the residential mortgage market and how shadow banks increase their market share or take away the mortgage demand from traditional banks. I use the triple-differences method to study the rise of shadow banks, a MIP cut experiment. My results found that shadow banks are much more active in the FHA market and that they expand access to credit to borrowers by taking away some demand from traditional banks. I also study the impact of the MIP …