We develop a tractable general equilibrium framework of housing and mortgage markets with aggregate and idiosyncratic … risks, costly liquidity and strategic defaults, empirically relevant informational asymmetries, and endogenous mortgage … takes the form of a home equity insurance mortgage (HEIM) that eliminates the strategic default option and insures the …

We develop a tractable general equilibrium framework of housing and mortgage markets with aggregate and idiosyncratic … risks, costly liquidity and strategic defaults, empirically relevant informational asymmetries, and endogenous mortgage …' homeownership values are known, aggregate wages and house prices determine the optimal state-contingent mortgage payments, which …

This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …

"This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …

This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …