Job Market Paper

• Barriers to Reentry: Initial Borrowing Frictions, Refinancing, and Wealth Redistribution
  Abstract

  This paper examines how frictions encountered during the initial home-purchase mortgage origination process shape borrowers’ future refinancing behavior and long-term financial outcomes. Leveraging variation in loan officer workload as a quasi-random source of lender-induced delays, I find that experiencing a 60+ day origination delay reduces quarterly refinancing rates by 16–24%. Exposure to these origination frictions is disproportionately concentrated among minority borrowers, low-income households, and those with lower credit scores, with evidence consistent with lender bias contributing to racial disparities. I quantify the cost of origination delays using both a back-of-the-envelope calculation and a model-based simulation, which imply present-value overpayments of approximately $6,500 to $8,500 per delayed borrower. I also evaluate policy alternatives including streamlined refinancing, automatic refinancing, and type-specific pricing, using the simulations to show how each option affects refinancing behavior and total mortgage payments.
• Winner of the Best Paper Award, USC Marshall PhD Conference in Finance 2025
• Winner of the Best Poster Award, ABFER Annual Conference 2025
• Recipient of Dr. Bong-Soo Lee Memorial Scholarship, Korea-America Finance Association 2025
• Recipient of the Humane Studies Fellowship, Institute for Humane Studies 2025
• Presentations 2025: ABFER Annual Conference Poster Session, AsianFA Annual Conference, BFWG International Conference, FIRS PhD Session, Real Estate Finance and Investment Symposium, UEA North American Meeting, USC Marshall PhD Conference in Finance, WSB Summer Research Conference, FMA Annual Meeting Job Market Paper Session (Scheduled)

Working Papers

• Nonbank Growth and Local Housing Booms (with Hyun-Soo Choi and Yongheng Deng).
  Abstract

  We study the effect of uneven nonbank mortgage expansion on localized housing market dynamics. Leveraging the local conforming loan-eligible share as as an instrument for nonbank credit supply, we show that increased nonbank lending drives housing booms, characterized by rapid home price appreciation, rising transaction volumes, and intensified market competition. The effects of nonbank credit are especially persistent in census tracts near affluent neighborhoods, potentially by facilitating gentrification, while more short-lived in areas farther from these neighborhoods. Additionally, we demonstrate that nonbank credit expansion has contributed to narrowing within-county price disparities across neighborhoods, thereby reshaping wealth distribution. Our findings highlight the crucial role of nonbank credit in housing market trends and household welfare.
• IMF News
• Presentations 2025: ABFER Annual Conference, AREUEA International Conference^*; 2024: AREUEA National Conference, Annual Conference on Asia-Pacific Financial Markets^*, Asia-Pacific Association of Derivatives^*, FSU-UF Critical Issues in Real Estate Symposium, Nanyang Technological University^*, National University of Singapore^*, Seoul National University^*, Sungkyunkwan University^*, TFA-KFA Joint Conference^*
  (*: presentation by coauthor)

• How Detrimental Was the Pandemic on Commercial Mortgages? Unveiling Long-Term Consequences for Retail Sector (with Dayin Zhang).
  Abstract

  We investigate commercial mortgages for retail properties following the second wave of the COVID-19 pandemic, employing a novel instrumental variable (IV) strategy. Utilizing exogenous geographic variations in COVID-19 spread induced by different rainfall levels during Black Lives Matter (BLM) protests, we find that the spread of COVID-19 results in reduced customer visits to retail stores, leading to a surge in financial distress for retail property owners. Subsequently, we observe an increase in business closures in defaulted retail properties in the following year, particularly in areas where tenant eviction moratoriums are not enforced. Our findings suggest that (1) the pandemic would lead to a substantial surge of mortgage defaults if there was no debt forbearance; and (2) the financial pressures on landlords with defaulted mortgages lead to more stringent eviction practices against distressed tenants. The adverse real impact on local businesses could be alleviated through either debt forbearance or eviction moratorium policies.
• Presentations 2022: AREUEA-ASSA Conference^*
  (*: presentation by coauthor)

Publications

Peer-Reviewed Journal

• Does Venture Capital Investment Enhance Corporate Innovation? Evidence from Korea (with Kyounghun Lee, Frederick Oh, and Donglim Shin), 2022. Journal of Business Finance & Accounting, 50(1-2), 236–266.
  Abstract

  We examine whether venture capital (VC) investment enhances corporate innovation in Korea. Using a matched sample of 802 firms from 1998 to 2012, we find that after the first round of VC investment, VC-backed firms are more innovative than non-VC-backed firms. Our results suggest that the positive influence of VC investment largely comes from the ability of VC firms to reduce information asymmetry between investors and ventures: VC funds managed by independent venture capitalists significantly enhance corporate innovation, whereas those managed by governmental venture capitalists do not. Furthermore, this positive influence becomes more pronounced where there is greater information asymmetry. Finally, we show that funds with profit-based compensation structures are more likely to encourage corporate innovation than those with fee-based compensation structures.

Book Chapter

• The American Housing Finance System: Structure, Evolution, and Implications (with Yongheng Deng and Susan M. Wachter), 2024, August. Oxford Research Encyclopedia of Economics and Finance. [SSRN]
  Abstract

  The U.S. housing finance system has been characterized by fixed-rate, long-term, and high maximum loan-to-value ratio mortgage loans, with unique support from secondary market entities Ginnie Mae and the government-sponsored enterprises, Fannie Mae and Freddie Mac. The authors provide a comprehensive review of the U.S. housing finance system, from its structure and evolution to the current continuing policy debate. The “American Mortgage” provides many more options to borrowers than are commonly provided elsewhere: U.S. homebuyers can choose whether to pay a fixed or floating rate of interest; they can lock in their interest rate in between the time they apply for the mortgage and the time they purchase their house; they can choose the time at which the mortgage rate resets; they can choose the term and the amortization period; they can generally prepay without penalty; and they can generally borrow against home equity. They can also obtain insured home mortgages at attractive terms with very low down payments. Perhaps most importantly, in the typical mortgage, payments remain constant throughout the potentially 30-year term of the loan. The unique characteristics of the U.S. mortgage provide substantial benefits for American homeowners and the overall stability of the economy. This article describes the evolution of the housing finance system which has led to the predominant role of this mortgage instrument in the United States.