with an increased reliance on alternative mortgage products such as pay-option and interest-only adjustable rate mortgages … that spurred use of alternative mortgages during the housing boom and the resulting impact on default patterns, relying on … feature of alternative mortgages. The model shows that, when future house-price expectations become more favorable, reducing …

alternative mortgage products such as pay-option ARMs and interest-only mortgages, which allow the borrower to defer principal … amortization. The goal of this paper is to better understand the forces that spurred use of alternative mortgages during the … repayment through various mechanisms that constitutes a main feature of alternative mortgages. The model shows that, when future …