Beltratti, Andrea E; Benetton, Matteo; Gavazza, Alessandro - C.E.P.R. Discussion Papers - 2015
We study the effect of mortgage prepayment penalties on borrowers' prepayments and delinquencies by exploiting a 2007 … the reform, mortgages issued to riskier borrowers included larger penalties; 2) higher prepayment penalties decreased … borrowers' prepayments; 3) higher prepayment penalties did not affect borrowers' delinquencies; and 4) prepayment penalties …