Allison Nicoletti

Allison Nicoletti and Christina Zhu (2023), Economic Consequences of Transparency Regulation: Evidence from Bank Mortgage Lending, Journal of Accounting Research, 61 (5), pp. 1827-1871. 10.1111/1475-679X.12498

Abstract: We examine the economic consequences of a rule designed to improve consumers' understanding of mortgage information. The 2015 TILA-RESPA Integrated Disclosures rule (TRID) simplifies the mortgage disclosures provided to consumers. As a consequence, TRID-affected mortgages become a less attractive investment opportunity to banks. Our main results document that mortgage applications affected by TRID are less likely to be approved following the rule's effective date. We find evidence consistent with both a decrease in consumers' information processing costs and an increase in banks' secondary market frictions, providing insight into the potential channels through which this reduction in mortgage credit operates. We also find that banks partially compensate for reduced mortgage lending by increasing small business lending, and that fintechs absorb mortgage demand in areas with reduced mortgage lending by banks. Our study documents real actions that firms take in response to disclosure transparency regulation and contributes to the literature on the economic consequences of such regulation.

Christopher Armstrong, Allison Nicoletti, Frank Zhou (2021), Executive stock options and systemic risk, Journal of Financial Economics.

Hailey Ballew, Allison Nicoletti, Sarah Stuber (2021), The Effect of the Paycheck Protection Program and Financial Reporting Standards on Bank Risk-Taking, Management Science.

Matthew Beck, Allison Nicoletti, Sarah Stuber (2021), The Role of Audit Firms in Spreading Depositor Contagion, The Accounting Review.

Hailey Ballew, Michael Iselin, Allison Nicoletti (2021), Accounting-based thresholds and growth decisions in the banking industry, Review of Accounting Studies.

Allison Nicoletti (2018), The effects of bank regulators and external auditors on loan loss provisions, Journal of Accounting and Economics, 66 (1).

Michael Iselin and Allison Nicoletti (2017), The Effects of SFAS 157 Disclosures on Investment Decisions, Journal of Accounting and Economics, 63 (2-3), pp. 404-427.