In these instances brand new requested can cost you out-of required consumer safeguards, that bank seats onto the consumer, is going to be greater than new consumers' readiness to pay for their particular shelter

In line with our theoretical conclusions, all of our empirical show signify the latest asked can cost you off consumer shelter try died to help you customers through the interest spread, that is the difference between the fresh financing and refinancing attention speed regarding mortgage finance companies. They tentatively help our very own examine you to definitely interest advances raise a whole lot more than proportionately that have rising decades to possess early costs try either abolished otherwise really capped. New paper comes to an end with a brief conversation of benefits away from all of our findings into general type of individual shelter regulations. We try to give a beneficial tentative reasons out of as to the reasons a buyers shelter legislation, which is aimed at expanding individual welfare, might reach the reverse.