competing hazard model for these types of prepayments plus default, we demonstrate that these outcomes are distinct, with some …

This paper assesses the relative importance of two key drivers of mortgage default: negative equity and illiquidity. To … authors find that both negative equity and illiquidity are significantly associated with mortgage default, with comparably … sized marginal effects. Moreover, these two factors interact with each other: The effect of illiquidity on default generally …

refinance loans, conditional on not experiencing mortgage default. We find that starting in 2009, subprime borrowers are about …

affected lenders' decisions to grant mortgages and borrowers' decisions to apply for them and subsequently default. Using … change. Furthermore, the law change did not appear to have affected borrowers' default decisions. These results cast a …

-securitized loans default at lower rates. We show, however, that “early defaulting loans” account for this: those that were so risky …