From 2007 to 2009 U.S. house prices plunged and mortgage defaults surged. While ostensibly consistent with widespread … “ruthless default,” analysis of detailed mortgage and house price data indicates that borrowers do not walk away until they are …

in a large government mortgage program. The Federal Housing Administration (FHA) insures most mortgages to lower …-downpayment, lower credit score borrowers, including a majority of first-time homebuyers. The FHA charges borrowers an annual mortgage …