The Park Place Economist


In this paper I will analyze the loan amount to income level of individuals applying for mortgage loans in the years following the financial recession. Additionally I will examine the impact that each independent variable has on the overall loan amount. Underwriting looks at many of these variables when analyzing a loan to determine a borrowers credit history. Here I will attempt to quantify the impact of some of these variables. I will use time series analysis techniques to examine any trends and patterns within the ratio. It is hypothesized that as applicant income increases, the loan amount applied for will increase at an even larger percentage, as applicants now have more peace of mind and financial security.