To understand the effects of regulation on mortgage risk, it is instructive to track the history of regulatory changes …-changing regulation impacted mortgage lending and risk. We use cross-sectional differences in the time- series variation of delinquency … rates, conditional on initial interest rates, to detect the effects of regulation on mortgage delinquencies …

We show that a significant number of households can perform a tax arbitrage by cutting back on their additional … mortgage payments and increasing their contributions to tax-deferred accounts (TDA). Using data from the Survey of Consumer … Finances, we show that about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax …

The U.S. mortgage market has experienced phenomenal change over the last 35 years. This paper develops and implements a … technique for assessing the impact of changes in the mortgage market on households. Our framework, which is based on the …

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 …

This paper solves a dynamic model of a household's decision to default on its mortgage, taking into account labor … income, house price, inflation, and interest rate risk. Mortgage default is triggered by negative home equity, which results … from declining house prices in a low inflation environment with large mortgage balances outstanding. Not all households …