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Nancy E. Wallace - Haas School of Business, University of California, Berkeley. Berkeley, CA, US

Nancy E. Wallace Nancy E. Wallace

Professor and Chair of the Real Estate Group | Lisle and Roslyn Payne Chair in Real Estate Capital Markets | Co-Chair, Fisher Center for Real Estate and Urban Economics | Haas School of Business, University of California, Berkeley

Berkeley, CA, UNITED STATES

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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

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)

How the algorithms running your life are biased

Washington Post  online

2019-09-09

Algorithms hidden in software programs often carry the biases of their creators. In a factsheet about how algorithms work, the article cites research by Professors Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and Richard Stanton, Kingsford Capital Management Chair in Business, and Assoc. Prof Adair Morse that found that while algorithmic lending systems are less discriminatory than face-to-face interaction, they still tend to charge higher interest rates to Latin and African-American borrowers.

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Bad, biased, and unethical uses of AI

The Enterprisers Project  online

2019-08-29

Looking at cases of unethical uses of AI can help managers avoid pitfalls. One such case was studied by Assoc. Prof. Adair Morse, Soloman P. Lee Chair in Business Ethics; Prof. Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets; and Prof. Richard Stanton, Kingsford Capital Management Chair in Business. In looking at online housing lenders, they found that even if the people writing the algorithms intended to create neutral systems, they've ended up discriminating against minority borrowers.

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Can algorithms be racist? Trump’s housing department says no

Reveal  online

2019-08-05

A new rule would would make it nearly impossible for banks, landlords, or insurance companies to be sued when their algorithms result in people of color being disproportionately denied housing. But algorithms aren't necessarily unbiased. Research by Assoc. Prof. Adair Morse, Prof. Nancy Wallace, and Prof. Richard Stanton has found that online lenders habitually charged borrowers of color higher interest rates than white borrowers with similar credit profiles.

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Knowing the “Value” of Our Data Won’t Fix Our Privacy Problems

Electronic Frontier Foundation  online

2019-07-15

Policies have been proposed that would put a dollar value on the data that companies collect from users. But that's not enough to protect consumers. For example, research by Assoc. Prof. Adair Morse, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, has found that data on potential borrowers was used to discriminate against non-white customers by online mortgage firms.

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Berkeley Haas’s Morse: FinTech Also Practices Housing Discrimination

Poets and Quants  online

2019-05-06

Assoc. Prof. Adair Morse of the Haas Finance Group, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Professor and Chair of the Real Estate Group, found that fintech lenders who use algorithms to determine mortgages are just as bad as traditional mortgage operations in discriminating against African American and Hispanic loan-seekers.

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Digital mortgages are here, but some buyers are hesitant to use them. Here's what you should know.

Chicago Tribune  online

2019-01-23

Algorithmic bias has replaced human bias in lending, according to research by Prof. Nancy Wallace, Prof. Richard Stanton, and Assoc. Prof. Adair Morse.

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Women can benefit more from stock options study reveals

Wealth Professional Canada  online

2019-01-10

Work by Prof. Nancy Wallace and Prof. Richard Stanton has found that options awarded to women cost companies 2 percent-4 percent more than those given to men. Senior managers also cost more than lower-ranking colleagues. The difference comes from how long the employees hold them.

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Women Hold Onto Stock Options Longer—and Reap the Benefits

Fortune  online

2019-01-08

Women hold onto their stock options longer than men—which can mean employers pay out more, according to work by Prof. Nancy Wallace and Prof. Richard Stanton. “It means women employees cost more,” Wallace said.

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Non-bank firms are now big players in America’s mortgage market

The Economist  online

2018-11-29

As interest rates rise and the housing market stutters, regulators are again pondering the risks from the mortgage market—this time from a shift towards non-bank originators. A recent paper by Professors Nancy Wallace and Richard Stanton warned of the risks posed by non-bank US mortgage lenders, who now represent a large percent of all real estate loans. When banks stopped lending during the financial crisis, the number of mortgage companies fell by half, and non-bank lenders stepped in. Little is known about the finances of these private lenders, and their finances may be fragile.

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Online lending hasn't removed discrimination, study shows

CNBC  online

2018-11-27

A study by Assoc. Prof. Adair Morse, Prof. Richard Stanton, and Prof. Nancy Wallace, found that both online and face-to-face lenders charge higher interest rates to black and Latino borrowers.

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How some algorithm lending programs discriminate against minorities

NPR Morning Edition  radio

2018-11-24

Washington Post columnist Michelle Singletary discusses work by Assoc. Prof. Adair Morse, Prof. Richard Stanton, and Prof. Nancy Wallace, that found a bias in lending: for people with similar qualifications applying for home loans, race did play a factor.

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A little oil, a little Brexit and some puppets

Marketplace  radio

2018-11-16

Work by Assoc. Prof. Adair Morse, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, has found that there's bias in lending: for people with similar qualifications applying for home loans, race did play a factor.

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Even machines are discriminating against black and Latino homebuyers

Washington Post  online

2018-11-15

Research by Assoc. Prof. Adair Morse, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, has found that even with automation, mortgage bias exists.

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Are you a minority borrower? You might want to think twice about using an online lender.

Washington Post  online

2018-11-14

It’s not just bank loan officers with racial biases who discriminate against black and Latino borrowers. Computer algorithms do, too. That's the groundbreaking conclusion of Berkeley Haas researchers who found that both online and face-to-face lenders make 11% to 17% higher profits off black and Latino borrowers. The study was co-authored by Assoc. Prof. Adair Morse, Prof. Richard Stanton, and Prof. Nancy Wallace of Haas, along with Prof. Robert Bartlett of Berkeley Law.

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Non-bank lenders are back and even bigger than before

Washington Post  online

2018-09-21

Lines of credit for non-bank lenders could be revoked if the firms providing the credit become concerned about the lenders’ financial health. And without credit, many lenders could be forced out of business. “If there is this shock, they’re much more likely to fail as firms because they’re much more exposed to the risks,” said Nancy E. Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets.

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Selected Papers & Publications (8)

Employee Stock Option Exercise and Firm Cost The Journal of Finance

Jennifer N. Carpenter, Richard Stanton, Nancy Wallace

December 2018

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CMBS Subordination, Ratings Inflation, and Regulatory-Capital Arbitrage Financial Management

Richard Stanton, Nancy Wallace

2017

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Comments on: Lending on Hold: Regulatory Uncertainty and Bank Lending Standards Journal of Monetary Economics

Nancy Wallace, Stefan Gissler, Jeremy Oldfather, and Doriana Ruffino

2016

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The Industrial Organization of the U.S. Residential Mortgage Market Annual Review of Financial Economics,

Nancy Wallace, Johan Walden, and Richard Stanton

2014

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Energy Efficiency Retrofits for U.S. Housing: Removing the Bottlenecks Regional Science and Urban Economics

Ashok Bardhan, Dwight Jaffee, Cynthia Kroll, Nancy Wallace

2014

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Rebalancing Public and Private in the Law of Mortgage Transfer American University Law Review

Nancy Wallace, John Patrick Hunt, Richard Stanton

2013

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U.S. Residential-Mortgage Transfer Systems: A Data-Management Crisis Handbook of Financial Risk

Nancy Wallace, John Patrick Hunt, Richard Stanton

2012

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All in One Basket: The Bankruptcy Risk of a National Agent-Based Mortgage Recording System University of California, Davis Law Review

John Patrick Hunt, Richard Stanton, Nancy Wallace

2012

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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

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