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Report

Consumer Finance Policy: Implementing Two-Tier Mortgage Regulation

Authors:

  • John Campbell, Harvard University
  • Sendhil Mullainathan, Harvard University
  • Richard Thaler , University of Chicago
  • Susan Woodward, Sand Hill Econometrics

Abstract

With the new Consumer Finance Protection Bureau beginning to gear up, it is an appropriate time to consider what kinds of policies the Bureau should adopt. One obvious place to begin is mortgages. Failures of the U.S. mortgage market have caused problems throughout the global economy. How can we do better? Can recent progress in the field of behavioral economics help?