Open AccessImpacts of loan-to-value ceilings in the Brazilian mortgage loans
Author(s) -
Nadiejda Deane Sá,
Ana Carolina Pereira Zoghbi,
Rafael Terra
Publication year - 2020
Publication title -
economia aplicada/economia aplicada
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.116
H-Index - 10
eISSN - 1980-5330
pISSN - 1413-8050
DOI - 10.11606/1980-5330/ea153614
Subject(s) - loan to value ratio , portfolio , secondary mortgage market , loan , mortgage loan , business , mortgage underwriting , actuarial science , mortgage insurance , economics , finance , casualty insurance , insurance policy
This study aims to assess the impact of loan-to-value ceiling applied by Resolution BCB No. 4,271 on the mortgage market in September 2013. Based on public aggregated data, we assessed the effect of the regulatory change on the loan-to-value and on quality of the portfolio using impact evaluation techniques that aim to estimate true causal effects. Results suggest the intervention did not reduce total mortgage loans. Interrupted time series and differences-in-differences estimates show statistically significant effects on the quality of the portfolio measured by the proportion of poorly rated credits.