We examine the effects of the Mortgage Electronic Registration System, or MERS, on mortgage origination volumes and foreclosure rates prior to the Great Recession. MERS was introduced in the late 1990s and significantly reduced the cost and time associated with secondary mortgage sales. Using novel data from the Massachusetts Registry of Deeds, we show that the introduction of MERS led to an expansion in mortgage credit supply that was primarily fueled by nonbank lenders originating mortgages to low-income borrowers. We also find that foreclosure rates were higher on these mortgages. Our paper provides a new explanation for the credit supply increases observed prior to the 2008 financial crisis and for the disproportionate supply increase observed in low-income areas.

我们研究了抵押电子登记系统 (MERS) 对大萧条前抵押贷款发放量和止赎率的影响。MERS 于 1990 年代后期推出，显着降低了与二级抵押贷款销售相关的成本和时间。使用马萨诸塞州契约登记处的新数据，我们表明 MERS 的引入导致抵押信贷供应的扩张，这主要是由非银行贷款机构向低收入借款人提供抵押贷款推动的。我们还发现，这些抵押贷款的止赎率更高。我们的论文为 2008 年金融危机之前观察到的信贷供应增加以及低收入地区观察到的不成比例的供应增加提供了新的解释。