Regulating Zombie Properties

Seminar summary

We evaluate how zombie property law affects mortgage supply, interest rates, and the renegotiation between lenders and borrowers. Exploiting exogenous differences in zombie property law along several US state borders, we document that the law, by imposing higher cost of post-foreclosure for lenders, causes them to reduce mortgage acceptance rates, raise interest rates, and strategically keep delinquent loans alive. The results are much stronger for non-banks due to their reliance on riskier mortgages. Our findings inform the debate on policy responses to eliminate zombie properties and enhance mortgage lending practices.

How to attend this seminar

We welcome you to join us online on Wednesday 17 May 2023 at 2pm

This seminar free to attend and we ask that you contact Dr Anna Sarkisyan for details on how to join.

Speaker bio

Professor Louis Nguyen

Louis Nguyen is Professor in Finance at Durham University. His research interests include corporate finance, banking, and climate finance. Louis has published in Review of Financial Studies, Management Science, Journal of Financial and Quantitative Analysis, Review of Finance, and other journals.