recent subprime mortgage crisis. Why did the financial markets fail to anticipate the recent debt crisis, despite the large … capital gain, the return on capital and the interest rate. An optimal debt ratio is derived where the drift is probabilistic …, does not depend upon the actual debt/net worth per se. Instead it increases in proportion to the difference between the …

This paper explores the importance of housing and mortgage market heterogeneity in 12 European countries for the …

purchasing and mortgage financing decisions. Finally, we highlight research on how expectations affect aggregate outcomes in the …

We quantify the housing-consumption channel in mortgage demand according to which households borrow more following … a structural approach to mortgage demand and supply, exploiting exogenous variation in house-price growth and a unique … dataset with matched transaction-price and mortgage information. We estimate an elasticity of mortgage borrowing to house …

leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals …. -- stochastic optimal control ; mortgage and financial crises ; Ito equation ; optimal dynamic risk management ; warning signals of … crisis ; optimal leverage and debt ratios ; Congressional Oversight Panel ; Case-Shiller index …

We assess the credit market impact of allowing mortgage "strip-down" as a foreclosure-prevention measure, where strip …-term reduction in mortgage interest rates and a small, short-term increase in mortgage approval rates, but no long-term effects, and … the circuit court decisions did not consistently affect mortgage terms. These results suggest that strip-down would be an …