risk in the mortgage market raises the default rate and spreads to the rest of the economy, creating a recession. In our … model two shocks are well suited to replicate the subprime crisis and the Great Recession: the mortgage risk shock and the …. This policy is successful in stabilizing the mortgage market and makes all agents better off. …

Shared-appreciation mortgage (SAM) contracts, which display payments indexed to a local house price, have been proposed …. Also, while this policy benefits Savers, only Borrowers with moderate/low mortgage and housing wealth levels are better …