The Effect of Negative Equity on Mortgage Default: Evidence from HAMP PRA

2015 ◽  
Author(s):  
Therese C. Scharlemann ◽  
Stephen H. Shore
Keyword(s):  
Mortgage Default

Subprime Mortgage Default

2010 ◽  
Author(s):  
James B. Kau ◽  
Donald C. Keenan ◽  
Constantine Lyubimov ◽  
V. Carlos Slawson
Keyword(s):  
Mortgage Default ◽  
Subprime Mortgage

Asymmetric Information and Subprime Mortgage Default

2015 ◽  
Author(s):  
Xudong An ◽  
A. Quang Do ◽  
Timothy J. Riddiough ◽  
Vincent W. Yao
Keyword(s):  
Asymmetric Information ◽  
Mortgage Default ◽  
Subprime Mortgage

Did Bankruptcy Reform Cause Mortgage Defaults to Rise?

2011 ◽  
Vol 3 (4) ◽  
pp. 123-147 ◽  
Author(s):  
Wenli Li ◽  
Michelle J White ◽  
Ning Zhu
Keyword(s):  
Financial Crisis ◽  
Financial Distress ◽  
Budget Constraints ◽  
Mortgage Default ◽  
Subprime Mortgage ◽  
Default Rates ◽  
Mortgage Defaults

Homeowners in financial distress can use bankruptcy to avoid defaulting on their mortgages, since filing loosens their budget constraints. But the 2005 bankruptcy reform made bankruptcy less favorable to homeowners and therefore caused mortgage defaults to rise. We test this relationship and find that the reform caused prime and subprime mortgage default rates to rise by 23% and 14%, respectively. Default rates rose even more for homeowners who were particularly negatively affected by the reform. We calculate that bankruptcy reform caused mortgage default rates to rise by one percentage point even before the start of the financial crisis. (JEL D14, G01, G21, K35)

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