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Mortgage Rates, Household Balance Sheets, and the Real Economy
Keys, Benjamin J.; Piskorski, Tomasz; Seru, Amit; Yao, … - National Bureau of Economic Research (NBER) - 2014
This paper investigates the impact of lower mortgage rates on household balance sheets and other economic outcomes … loans, which constitute the vast majority of U.S. mortgage borrowers. Relying on variation in the timing of resets of … adjustable rate mortgages, we find that a sizable decline in mortgage payments ($150 per month on average) induces a significant …
Persistent link: https://www.econbiz.de/10010951393
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Why Don't Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures and Securitization
Adelino, Manuel; Gerardi, Kristopher; Willen, Paul S. - National Bureau of Economic Research (NBER) - 2009
We document the fact that servicers have been reluctant to renegotiate mortgages since the foreclosure crisis started in 2007, having performed payment reducing modifications on only about 3 percent of seriously delinquent loans. We show that this reluctance does not result from securization:...
Persistent link: https://www.econbiz.de/10005079162
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The Degree of Judicial Enforcement and Credit Markets: Evidence from Japanese Household Panel Data
Horioka, Charles Yuji; Sekita, Shizuka - National Bureau of Economic Research (NBER) - 2010
In this paper, we conduct an empirical analysis of the impact of better judicial enforcement on the probability of being credit rationed, loan size, and the probability of bankruptcy using household-level data from the Japanese Panel Survey of Consumers, conducted by the Institute for Research...
Persistent link: https://www.econbiz.de/10008601672
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Diagnosing Consumer Confusion and Sub-Optimal Shopping Effort: Theory and Mortgage-Market Evidence
Woodward, Susan E.; Hall, Robert E. - National Bureau of Economic Research (NBER) - 2010
Mortgage loans are leading examples of transactions where experts on one side of the market take advantage of consumers …' lack of knowledge and experience. We study the compensation that borrowers pay to mortgage brokers for assistance from …
Persistent link: https://www.econbiz.de/10008631105
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Moral and Social Constraints to Strategic Default on Mortgages
Guiso, Luigi; Sapienza, Paola; Zingales, Luigi - National Bureau of Economic Research (NBER) - 2009
We use survey data to study American households' propensity to default when the value of their mortgage exceeds the … value of their house even if they can afford to pay their mortgage (strategic default). We find that 26% of the existing … the house. Yet, 17% of households would default, even if they can afford to pay their mortgage, when the equity shortfall …
Persistent link: https://www.econbiz.de/10005039683
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Win Some Lose Some? Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco
Angelucci, Manuela; Karlan, Dean; Zinman, Jonathan - National Bureau of Economic Research (NBER) - 2013
Theory and evidence have raised concerns that microcredit does more harm than good, particularly when offered at high interest rates. We use a clustered randomized trial, and household surveys of eligible borrowers and their businesses, to estimate impacts from an expansion of group lending at...
Persistent link: https://www.econbiz.de/10010796674
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Follow the Money: Methods for Identifying Consumption and Investment Responses to a Liquidity Shock
Karlan, Dean; Zinman, Jonathan; Osman, Adam - National Bureau of Economic Research (NBER) - 2013
Identifying the impacts of liquidity shocks on spending decisions is difficult methodologically but important for theory, practice, and policy. Using seven different methods on microenterprise loan applicants, we find striking results. Borrowers report uses of loan proceeds strategically, and...
Persistent link: https://www.econbiz.de/10010796676
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Microcredit Impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco
Angelucci, Manuela; Karlan, Dean; Zinman, Jonathan - National Bureau of Economic Research (NBER) - 2014
Theory and evidence have raised concerns that microcredit does more harm than good, particularly when offered at high interest rates. We use a clustered randomized trial, and household surveys of eligible borrowers and their businesses, to estimate impacts from an expansion of group lending at...
Persistent link: https://www.econbiz.de/10010796722
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Collateral Valuation and Borrower Financial Constraints: Evidence from the Residential Real Estate Market
Agarwal, Sumit; Ben-David, Itzhak; Yao, Vincent - National Bureau of Economic Research (NBER) - 2013
Financially constrained borrowers have the incentive to influence the appraisal process in order to increase borrowing or reduce the interest rate. We document that the average valuation bias for residential refinance transactions is above 5%. The bias is larger for highly leveraged...
Persistent link: https://www.econbiz.de/10010703331
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The Inefficiency of Refinancing: Why Prepayment Penalties Are Good for Risky Borrowers
Mayer, Christopher; Piskorski, Tomasz; Tchistyi, Alexei - National Bureau of Economic Research (NBER) - 2010
This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …
Persistent link: https://www.econbiz.de/10008756452