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Research Seminars & Workshops @ IRES


Professor Brent W. Ambrose
Institute of Real Estate Studies, Smeal College of Business
Pennsylvania State University

The Impact of Mortgage Credit Expansion On the Performance of Residential Leases


Date:

18 May 2011 (Wed)

Time:

10 am - 12 pm

Venue:

SDE3, Lecture Room 427, Level 4


Abstract

Did the expansion in subprime mortgage credit during the 2002-2006 housing bubble adversely affect other real estate markets? We empirically answer this question using insights from a simple theoretical model demonstrating how an expansion in subprime lending may increase the overall riskiness of rental household population. Using a large database of residential rental lease payment histories, our results confirm that the expansion in subprime lending is associated with an overall decline in the quality of rental payments. As a result, we confirm that the expansion of higher risk subprime mortgages had a direct impact on the residential rental market.

About The Speaker

Brent W. Ambrose is the Smeal Professor of Real Estate and Director of the Institute for Real Estate Studies in the Smeal College of Business at the Pennsylvania State University. In 2010, he was the President of the American Real Estate and Urban Economics Association (AREUEA) and served as its Executive Vice President from 1996 to 2003. He is a Fellow of the Weimer School of Advanced Studies in Real Estate and Land Economics at the Homer Hoyt Advanced Studies Institute, the Real Estate Research Institute, and in 2006 was appointed a Fellow of the FDIC Center for Financial Research. Dr. Ambrose serves on the editorial boards of the Journal of Real Estate Finance and Economics, the Journal of Real Estate Research, the International Real Estate Review, and Real Estate Economics, and is a member of the advisory board of the Real Estate Research Institute and the board of directors of the American Real Estate and Urban Economics Association.

Dr. Ambrose's research interests include issues related to Real Estate Investment Trusts (REITs), loss mitigation programs associated with mortgage default and foreclosure, Government Sponsored Enterprises (GSEs), fixed-income securities, and consumer credit contracts. He has consulted with the U.S. Department of Housing and Urban Development and the Congressional Budget Office on several occasions regarding issues concerning FHA mortgage default and foreclosure, economically targeted assets, privatization of Fannie Mae and Freddie Mac, and the GSEs' affordable housing goals. His work appears in The Journal of Money Credit and Banking, The Journal of Financial Intermediation, The Journal of Real Estate Finance and Economics, Journal of Financial and Quantitative Analysis, Journal of Financial Services Research, Financial Management, Financial Analysts Journal, Real Estate Economics, Regional Science and Urban Economics, Journal of Real Estate Research, Journal of Urban Economics, Journal of Housing Economics, Journal of Housing Research, The Wharton Real Estate Review, and Cityscape: A Journal of Policy Development and Research. In addition, he is co-editor of Household Credit Usage: Personal Debt and Mortgages, published by Palgrave/MacMillian. Dr. Ambrose holds a Ph.D. and M.B.A. from the University of Georgia and a B.S. in Business from Wake Forest University.

For full paper, download herehttp://www.rst.nus.edu.sg/research/images/pdf1.GIF


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