done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on a mortgage and … illustrate that unaffordable loans, defined as those with high mortgage payments relative to income at origination, are unlikely … for the low number of modifications to date than contract frictions related to securitization agreements between servicers …

We document the emergence of a disconnect between mortgage and Treasury interest rates in the summer of 2003. Following … the end of the Federal Reserve expansionary cycle in June 2003, mortgage rates failed to rise according to their … historical relationship with Treasury yields, leading to significantly and persistently easier mortgage credit conditions. We …

We solve the problem of optimal securitization for an issuer facing heterogeneous investorswith arbitrary time and risk …

mortgage finance. We describe the special features of these two companies and their roles in the mortgage markets. We then …

This paper examines two major forces that may soon increase competition in the U.S. secondary conforming mortgage … market: 1) the expansion of Federal Home Loan Bank mortgage purchase programs, and 2) the adoption of revised risk …

We study the effects of securitization on renegotiation of distressed residential mortgages over the current financial …% of the U.S. mortgage market. Exploiting within-servicer variation in these data, we find that bank-held loans are 26% to …-modification default rates by 9% (3.5% in absolute terms). Our findings support the view that frictions introduced by securitization create …

mortgage finance. The authors describe the special features of these two companies and their roles in the mortgage markets and …

The meltdown in residential real-estate prices that commenced in 2006 resulted in unprecedented mortgage delinquency … by differences in borrower population. Consistent with the idea that securitization induces agency conflicts, we confirm … following modifications. While modification terms are more favorable for weaker borrowers, greater reductions in mortgage …

trend toward securitization of home mortgages. This paper identifies the causes and consequences of the financial …

In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale … mortgage distress on house prices. …