scholarly journals The Dynamics of Adjustable-Rate Subprime Mortgage Default A Structural Estimation

2015 ◽  
Author(s):  
Hanming Fang ◽  
You Suk Kim ◽  
Wenli Li
Keyword(s):  
Structural Estimation ◽  
Mortgage Default ◽  
Subprime Mortgage ◽  
Adjustable Rate

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)

scholarly journals A Dynamic Model of Subprime Mortgage Default: Estimation and Policy Implications

2013 ◽  
Author(s):  
Patrick Bajari ◽  
Chenghuan Sean Chu ◽  
Denis Nekipelov ◽  
Minjung Park
Keyword(s):  
Dynamic Model ◽  
Policy Implications ◽  
Mortgage Default ◽  
Subprime Mortgage

Subprime mortgage default

2011 ◽  
Vol 70 (2-3) ◽  
pp. 75-87 ◽  
Author(s):  
James B. Kau ◽  
Donald C. Keenan ◽  
Constantine Lyubimov ◽  
V. Carlos Slawson
Keyword(s):  
Mortgage Default ◽  
Subprime Mortgage

Understanding Subprime Mortgage Default

2019 ◽  
Vol 27 (1) ◽  
pp. 27-52 ◽  
Author(s):  
Tim Jones ◽  
G. Stacy Sirmans
Keyword(s):  
Mortgage Default ◽  
Subprime Mortgage

Subprime Mortgage Default in Minority Neighborhoods

2016 ◽  
Author(s):  
Robert A. Connolly ◽  
Lynn M. Fisher ◽  
Gary Painter
Keyword(s):  
Mortgage Default ◽  
Subprime Mortgage

scholarly journals Payment Size, Negative Equity, and Mortgage Default

2017 ◽  
Vol 9 (4) ◽  
pp. 167-191 ◽  
Author(s):  
Andreas Fuster ◽  
Paul S. Willen
Keyword(s):  
Interest Rate ◽  
Treatment Effect ◽  
Mortgage Default ◽  
Rate Environment ◽  
Adjustable Rate

This paper studies the treatment effect of monthly payment size on mortgage default, using a sample of adjustable-rate loans that experienced large payment reductions thanks to the recent low interest rate environment. Payment size has an economically large effect on repayment behavior; for instance, cutting the required payment in half reduces the delinquency hazard by about 55 percent. Importantly, the link between payment size and delinquency is equally strong for borrowers that are significantly underwater on their mortgage. Relying on payment reductions for identification circumvents the selection concerns due to prepayments that would be associated with rate increases. (JEL D14, G21, R31)

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