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 …

Looking back to the 1930s provides the opportunity to examine one severe mortgage crisis as we live through another …. This paper examines the development of the residential mortgage market during the 1920s, the institutional disruptions that … development of the residential mortgage market and led to a postwar system in which portfolio lenders dominated both local and …

Covered mortgage bonds have been used successfully in Europe for two centuries, but failed in the U.S. when introduced … as farm mortgage debentures in the 1880s. Using firm-level data and a sample of loans made by one Kansas mortgage company … mortgage market and facilitated an expansion of western farm mortgage debt before the innovation failed in the mortgage crisis …

governmental mortgage guarantee plans, and greater reliance on private mortgage markets. The analysis also considers the likely … consequences of adopting alternative roles for government in the U.S. housing and mortgage markets. We start by reviewing the … history of the GSEs and their contributions to the operation of U.S. housing and mortgage markets, including the actions that …