Nancy E. Wallace 
Professor and Chair of the Real Estate Group | Lisle and Roslyn Payne Chair in Real Estate and Capital Markets | Co-Chair, Fisher Center for Real Estate and Urban Economics | Haas School of Business, University of California, Berkeley
Berkeley, CA, UNITED STATES
Spotlight
Areas of Expertise (6)
Housing Price Indices and Models
Mortgage Prepayment and Pricing Models
Option Pricing Models for Commercial and Retail Real Estate Leases for Use in the Commercial Mortgage-backed Securities Markets
Mortgage Contract Design
Mortgage Backed Security Trading
Executive Stock Option Valuation
About
Nancy Wallace is the the Lisle and Roslyn Payne Chair in Real Estate Capital Markets at Berkeley Haas. She serves as chair of the Real Estate Group and co-chair of the Fisher Center for Real Estate and Urban Economics. Wallace is an expert in mortgages, mortgage-related securities, and other real estate topics.
Education (3)
The University of Michigan: PhD, Urban and Regional Planning
The University of Paris VIII, Institute of Urbanism: License, Maitrisse
The University of Michigan: BA, Political Science
Links (2)
Honors & Awards (3)
UC Berkeley Faculty Service Award
Feb 2019 Bestowed by the Berkeley Division of the Academic Senate on faculty whose “outstanding and dedicated service to the campus, and whose activities as a faculty member have significantly enhanced the quality of the campus as an educational institution and community of scholars.”
Earl F. Cheit Outstanding Teaching Award, Haas School
2002, 2005
Bloom Award, American Real Estate and Urban Economics
2010
Selected External Service & Affiliations (7)
- The Federal Reserve System, Model Validation Council, (6/2013 – present)
- Financial Research Advisory Committee, Office of Financial Research, U.S. Treasury, (2012 –present)
- Committee on Academic Planning and Resource Allocation, CAPRA (2012 – 2013; Co-Chair 2013 – 2014)
- University of California Office of the President, Task Force on Investments and Retirement, At-large member. (2013 – 2014).
- Board of Directors and past president, American Real Estate and Urban Economics Association
- Visiting Scholar: San Francisco Federal Reserve Bank, Stanford Graduate School of Business, Stockholm School of Economics
- Editorial Board: Journal of Computational Finance, Journal of Real Estate Research
Positions Held (1)
At Haas since 1986
2001 – present, Co-Chair, Fisher Center for Real Estate and Urban Economics 2000 – present, Professor of Real Estate, Haas School of Business 1993 – 2000, Associate Professor in Real Estate, Haas School of Business 1986 – 1993, Assistant Professor in Real Estate, Haas School of Business Spring 1997, Visiting Associate Professor in Finance, Graduate School of Business, Stanford University
Media Appearances (15)
Black Homebuyers Today Pay An Unequal Price
NPR - All Things Considered online
2021-05-07
After the 2008 financial crisis, mortgage backers began charging more to borrowers with lower credit scores and less wealth—a practice that disproportionately affects Black homebuyers in America. Research by professors Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate and Capital Markets; Richard Stanton, Kingsford Capital Management Chair in Business; and Assoc. Prof. Adair Morse, the Soloman P. Lee Chair in Business Ethics (on leave), found that fintech lenders who use algorithms to determine mortgages are just as bad as traditional mortgage operations in charging higher rates to African American and Latino loan-seekers.
Trump leaves office facing mounting debt, devalued assets and scarcity of willing lenders
PBS NewsHour tv
2021-01-22
One of the consequences of the U.S. Capitol riot has been the distancing of banks and other business from former President Trump. Prof. Nancy Wallace, chair of the Real Estate Group, was interviewed on Trump's banking and real estate situation. Banks are moving to close Trump's bank accounts, she said. "There is huge reputational risk in banking and anything associated with a significant lack of transparency is too risky," she said.
What next for the Trump brand?
BBC World Business Report radio
2020-11-20
Pres. Trump is looking at a difficult financial situation after he leaves office. Prof. Nancy Wallace, The Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and co-chair of the Fisher Center for Real Estate and Urban Economics, said he has loans worth more than $480 million that will come due in the next four years and he will be challenged to pay them back.
Why Fintech Needs to Tackle AI Bias
Wired online
2020-11-06
Minority home buyers face widespread statistical lending discrimination even when lenders are using online, algorithm-based models, according to research by Prof. Nancy Wallace, chair of the Real Estate Group and the Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and co-chair of the Fisher Center for Real Estate and Urban Economics; Prof. Richard Stanton, the Kingsford Capital Management Chair in Business; and Assoc. Prof. Adair Morse, Soloman P. Lee Chair in Business Ethics.
Trump Facing Devastating Debt Load? Experts Say Not So Fast
The Washington Post online
2020-09-29
Pres. Trump must pay back $300 million in loans over the next four years. While he may be able renegotiate some deals, not all of his lenders are banks and other institutions that he can sit across a table from. Prof. Nancy Wallace, The Lisle and Roslyn Payne Chair in Real Estate Capital Markets and co-chair of the Fisher Center for Real Estate and Urban Economics, said that hundreds of millions of Trump’s bank loans have been packaged into bonds and sold to investors, and the banks are no longer in charge.
Why Donald Trump Is Facing a Financial Nightmare
Mother Jones online
2020-09-28
Prof. Nancy Wallace said the scrutiny that Deutsche Bank has faced over its dealings with Pres. Trump may scare off other banks. "I think any bank I can think of in the United States would have exactly the same response: He is toxic. Exposing yourself to that kind of oversight under the current regulatory reality, for lenders who are large enough to provide capital to him, is just a nonstarter."
Can Digital Mortgage Platforms Reduce Discrimination in Lending?
DNYUZ online
2020-09-18
Fintech algorithms discriminated 40 percent less than face-to-face lenders when issuing loans to borrowers, according to research by Prof. Nancy Wallace, Prof. Richard Stanton, and Assoc. Prof. Adair Morse. "Discrimination is definitely falling, and it corresponds to the rise in competition between fintech lenders and regular lenders," said Wallace, Chair of the Real Estate Group and Lisle and Roslyn Payne Chair in Real Estate Capital Markets.
Is an Algorithm Less Racist Than a Loan Officer?
The New York Times online
2020-09-18
"Discrimination is definitely falling, and it corresponds to the rise in competition between fintech lenders and regular lenders,” said Prof. Nancy Wallace, chair of the Real Estate Group and the Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and co-chair of the Fisher Center for Real Estate and Urban Economics. Her research found that fintech algorithms discriminated 40% less on average that traditional lenders, and not at all in accepting and rejecting loans. Even so, fintech lenders still charge Black and Hispanic borrowers higher interest rates than whites.
Why Corporations' Responses To George Floyd Protests Matter
SP Global online
2020-07-23
While companies like to call out their support for the Black Lives Matter movement, discrimination is often built into systems. Minorities are discriminated against by lenders, according to research by Prof. Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and co-chair of the Fisher Center for Real Estate and Urban Economics; Prof. Richard Stanton, the Kingsford Capital Management Chair in Business; and Assoc. Prof. Adair Morse, Soloman P. Lee Chair in Business Ethics.
Trump Has a Half Billion in Loans Coming Due. They May Be His Biggest Conflict of Interest Yet.
Mother Jones online
2020-06-29
Pres. Trump has multiple loans with Deutsche Bank for real estate developments, deals that have put the bank under the microscope and soured the relationship. "I think any bank I can think of in the United States would have exactly the same response: He is toxic," said Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and co-chair of the Fisher Center for Real Estate and Urban Economics.
The “Shadow Banks” Are Back, and Still Too Big to Fail
The New Republic online
2020-04-27
This analysis of the problems with nonbank lenders opens with quotes from an interview with Prof. Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets and co-chair of the Fisher Center for Real Estate and Urban Economics, who warned of "a looming nightmare" in the economy. While fiscal stimulus provisions give homeowners forbearance from making mortgage payments for up to a year, she says some of the players in the nonbank mortgage industry likely don't have the necessary funds on hand to last even 30 days without payments coming in.
UC Berkeley professors suggest mortgage crisis may be imminent amid coronavirus pandemic
Daily Californian online
2020-04-21
Prof. Nancy Wallace, chair of the Real Estate Group and the Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and co-chair of the Fisher Center for Real Estate and Urban Economics, and Prof. Richard Stanton, the Kingsford Capital Management Chair in Business, have argued that narratives surrounding the 2008 recession typically focus on the housing bubble, while the role of nonbank financial institutions in the crisis is understated. That could also be the case now as the economy heads towards recession. "The fundamental problem is the same, since as in 2007 we also saw large scale bankruptcy amongst nonbank lenders," Wallace said.
Mortgage Firms Teeter Near Crisis That Regulators Saw Coming
Bloomberg online
2020-04-03
Nonbank financial firms that spent years lobbying against tougher regulation say they are in desperate need of a bailout to stave off bankruptcy and a potential collapse of the U.S. housing market. Professors Nancy Wallace and Richard Stanton have been sounding the alarm since 2018 that nonbank lenders, who now service two-thirds of residential loans, don’t have the capital to withstand an economic downturn.
Mortgage industry seeks billions in federal help as homeowners stop paying their loans
The Washington Post online
2020-03-27
Non-bank lenders are not required to have the same capital cushion to safeguard against an economic downturn, said Prof. Nancy E. Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets. "They are not regulated. They are quote unquote supervised. But there is no consistency in the oversight of these firms, state by state," Wallace said.
Can an MBA help build a career in property?
Financial Times online
2020-01-26
The Haas School's real estate program emphasizes financial rigor—students learn about the “capital stack”, or layers of funding for a real estate development, in a certificate course that is also taught by the schools of law and environmental design. "One reason for the [2008] crisis was the fact that many people had absolutely no idea what they were investing in," says Prof. Nancy Wallace, Chair of the Real Estate Group, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and Co-Chair of the Fisher Center for Real Estate and Urban Economics.
Selected Papers & Publications (8)
Employee Stock Option Exercise and Firm Cost
The Journal of FinanceJennifer N. Carpenter, Richard Stanton, Nancy Wallace
December 2018
CMBS Subordination, Ratings Inflation, and Regulatory-Capital Arbitrage
Financial ManagementRichard Stanton, Nancy Wallace
2017
Comments on: Lending on Hold: Regulatory Uncertainty and Bank Lending Standards
Journal of Monetary EconomicsNancy Wallace, Stefan Gissler, Jeremy Oldfather, and Doriana Ruffino
2016
The Industrial Organization of the U.S. Residential Mortgage Market
Annual Review of Financial Economics,Nancy Wallace, Johan Walden, and Richard Stanton
2014
Energy Efficiency Retrofits for U.S. Housing: Removing the Bottlenecks
Regional Science and Urban EconomicsAshok Bardhan, Dwight Jaffee, Cynthia Kroll, Nancy Wallace
2014
Rebalancing Public and Private in the Law of Mortgage Transfer
American University Law ReviewNancy Wallace, John Patrick Hunt, Richard Stanton
2013
U.S. Residential-Mortgage Transfer Systems: A Data-Management Crisis
Handbook of Financial RiskNancy Wallace, John Patrick Hunt, Richard Stanton
2012
All in One Basket: The Bankruptcy Risk of a National Agent-Based Mortgage Recording System
University of California, Davis Law ReviewJohn Patrick Hunt, Richard Stanton, Nancy Wallace
2012
Teaching (5)
Real Estate Finance
EMBA 283
Real Estate Investment Analysis
MBA 280
Real Estate Strategy
MBA 284
Real Estate Investment Analysis and Urban Economics
MBA 180
Asset-backed Securization
MFE 230M
