Using the adoption of Zombie Property Law (ZL) across several US states, we show that increased lender accountability in the foreclosure process affects mortgage lending decisions and standards. Difference-in-differences estimations using a state border design show that ZL incentivizes lenders...

It is crucial to better understand the U.S. residential mortgage market, where the global financial crisis originated. In this paper, we develop an infinite-horizon continuous-time structural model to study the effects of the long- standing and widespread Government-Sponsored Enterprises (GSEs)...