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
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.
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
Bloom Award, American Real Estate and Urban Economics
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)
Why Corporations' Responses To George Floyd Protests Matter
SP Global online
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
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
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
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
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
Washington Post online
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
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  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.
New York Mayor de Blasio referred Trump Organization information to district attorney because of possible crime
Mayor de Blasio said that the city notified Manhattan prosecutors after news reports that the Trump Organization gave conflicting information about income and expenses to city tax officials and investors. In an earlier interview with ProPublica, Prof. Nancy Wallace, Chair of the Real Estate Group and Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and Co-Chair of the Fisher Center for Real Estate and Urban Economics, said those discrepancies are "versions of fraud."
This Is What Racism Sounds Like in the Banking Industry
New York Times online
Jimmy Kennedy earned $13 million during his nine-year career as a player in the National Football League. He was the kind of person most banks would be happy to have as a client.
Never-Before-Seen Trump Tax Documents Show Major Inconsistencies
The publication has uncovered conflicting information in the tax and lending records for Trump Tower in Manhattan. Last month, ProPublica reported on discrepancies in records for two other Trump properties—a skyscraper located at 40 Wall Street and the Trump International Hotel and Tower near Columbus Circle. The inconsistencies make the properties appear more profitable to the lender and less so to property tax officials, ProPublica reported. These discrepancies were "versions of fraud," according to Prof. Nancy Wallace, Chair of the Real Estate Group, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets, and Co-Chair of the Fisher Center for Real Estate and Urban Economics.
How the algorithms running your life are biased
Washington Post online
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.
Bad, biased, and unethical uses of AI
The Enterprisers Project online
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.
Can algorithms be racist? Trump’s housing department says no
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.
Knowing the “Value” of Our Data Won’t Fix Our Privacy Problems
Electronic Frontier Foundation online
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.
Berkeley Haas’s Morse: FinTech Also Practices Housing Discrimination
Poets and Quants online
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.
Selected Papers & Publications (8)
Employee Stock Option Exercise and Firm CostThe Journal of Finance
Jennifer N. Carpenter, Richard Stanton, Nancy Wallace
CMBS Subordination, Ratings Inflation, and Regulatory-Capital ArbitrageFinancial Management
Richard Stanton, Nancy Wallace
Comments on: Lending on Hold: Regulatory Uncertainty and Bank Lending StandardsJournal of Monetary Economics
Nancy Wallace, Stefan Gissler, Jeremy Oldfather, and Doriana Ruffino
The Industrial Organization of the U.S. Residential Mortgage MarketAnnual Review of Financial Economics,
Nancy Wallace, Johan Walden, and Richard Stanton
Energy Efficiency Retrofits for U.S. Housing: Removing the BottlenecksRegional Science and Urban Economics
Ashok Bardhan, Dwight Jaffee, Cynthia Kroll, Nancy Wallace
Rebalancing Public and Private in the Law of Mortgage TransferAmerican University Law Review
Nancy Wallace, John Patrick Hunt, Richard Stanton
U.S. Residential-Mortgage Transfer Systems: A Data-Management CrisisHandbook of Financial Risk
Nancy Wallace, John Patrick Hunt, Richard Stanton
All in One Basket: The Bankruptcy Risk of a National Agent-Based Mortgage Recording SystemUniversity of California, Davis Law Review
John Patrick Hunt, Richard Stanton, Nancy Wallace
Real Estate Finance
Real Estate Investment Analysis
Real Estate Strategy
Real Estate Investment Analysis and Urban Economics