This paper focuses on the potential externalities associated with subprime mortgage origination activity. Specifically …, we examine whether negative spillover effects from subprime mortgage originations result in higher default rates in the … neighborhood does not lead to greater default risks for surrounding borrowers. However, we do find that more aggressive mortgage …

borrower types and provides better pricing. We test the effectiveness of a specific set of contracts in the mortgage market …: mortgage points. Points allow borrowers to exchange an upfront amount for a decrease in the mortgage rate. We document that, on … overestimate how long they will stay with the mortgage …

mortgage products. We identify this activity by comparing borrowers who were rejected by lenders but were subsequently approved …

mortgage products. We identify this activity by comparing borrowers who were rejected by lenders but were subsequently approved …