Vivek Sah and Shawn McCoy (both Economics), along with their co-author Luis Lopez from University of Illinois, Chicago have had their paper, "Steering Consumers to Lenders in Residential Real Estate Markets" accepted at Real Estate Economics, the top real estate journal with an impact factor of 3.41. The journal is recognized as "A-" in the Lee Business School's SARS journal list. The study uses novel data on property listings to identify bidding constraints requiring financed buyers to obtain a pre-qualification letter from a seller-preferred lender even if the buyers have been pre-qualified with other lenders. The study finds evidence that steering increases the likelihood of sale but not that it drives borrowers to take out high-cost or complex mortgages.
Share your thoughts about this story. To comment, you'll need to login into your Facebook account. Your comment will post immediately. Comments that are not in keeping with our comment policies may be removed by editors.