hero image
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

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

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)

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.

view more

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.

view more

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.

view more

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.

view more

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.

view more

Mortgage industry seeks billions in federal help as homeowners stop paying their loans

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.

view more

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.

view more

New York Mayor de Blasio referred Trump Organization information to district attorney because of possible crime

CNBC  online

2020-01-10

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."

view more

This Is What Racism Sounds Like in the Banking Industry

New York Times  online

2019-12-11

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.

view more

Never-Before-Seen Trump Tax Documents Show Major Inconsistencies

ProPublica  online

2019-10-16

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.

view more

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.

view more

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.

view more

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.

view more

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.

view more

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.

view more

Selected Papers & Publications (8)

Employee Stock Option Exercise and Firm Cost The Journal of Finance

Jennifer N. Carpenter, Richard Stanton, Nancy Wallace

December 2018

view more

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

Richard Stanton, Nancy Wallace

2017

view more

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

view more

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

Nancy Wallace, Johan Walden, and Richard Stanton

2014

view more

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

Ashok Bardhan, Dwight Jaffee, Cynthia Kroll, Nancy Wallace

2014

view more

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

Nancy Wallace, John Patrick Hunt, Richard Stanton

2013

view more

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

Nancy Wallace, John Patrick Hunt, Richard Stanton

2012

view more

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

view more

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