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- Title
Religion and Mortgage Misrepresentation.
- Authors
Conklin, James; Diop, Moussa; Qiu, Mingming
- Abstract
We investigate whether religion acts as a deterrent to the types of mortgage misrepresentation that played a significant role in the recent housing boom and bust. Using a large sample of mortgages originated from 2000 to 2007, we provide evidence that local religious adherence (religiosity) is associated with a lower likelihood of home appraisal overstatement and owner occupancy misreporting. The evidence on borrower income misrepresentation is mixed. Religiosity does not appear to reduce the incidence of income misrepresentation; however, it seems to restrain the degree to which income is misrepresented. Our results are generally consistent with the hypothesis that religion, as a set of social norms, fosters ethical behavior, and possibly risk aversion, in the mortgage market.
- Subjects
MORTGAGES; MORTGAGE fraud; MORTGAGE loans; ECONOMICS &; religion; FINANCIAL risk; RISK aversion; PREJUDICES; VALUATION
- Publication
Journal of Business Ethics, 2022, Vol 179, Issue 1, p273
- ISSN
0167-4544
- Publication type
Article
- DOI
10.1007/s10551-021-04831-2