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played changes in demographic factors and innovations in the mortgage market which lessened downpayment requirements. To … generation model with housing. We find that the long-run importance of the introduction of new mortgage products for the …
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During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...
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down payments, the life-cycle profile of home ownership, and the mortgage default rate. In addition, we show that the …
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literature recognizes the substantial lag between the time that a borrower stops making payments on a mortgage and the …
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whether delinquency has any predictive power of the future performance of a mortgage. Using a sample of subprime mortgages …
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individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks …
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