This paper uses a data set from a leading American subprime lender, which contains detailed information on borrower and loan characteristics. We find that financial professionals are less likely to become delinquent. This effect cannot be explained by borrower characteristics, such as income,...

This paper uses a dataset from one of the leading subprime lenders in America, containing detailed information on borrower and loan characteristics, finds that borrowers from the financial industry, who have higher financial literacy, are less likely to default. This effect cannot be explained...

This paper shows, for the first time, how liquidity infusions from government bailouts affect loan modification in the mortgage market. The design of the Pooling and Service Agreement leads mortgage servicers to prefer foreclosure to modification when the servicers are liquidity constrained....

This paper studies the effects of debt insurance on the likelihood of debt renegotiation with the setting of mortgages. Mortgage insurance enables mortgage holders to potentially get compensation for the loss in mortgage investment resulting from borrower's default and subsequent liquidation. If...

This paper shows how liquidity infusions affect loan modification in the mortgage market. The design of pooling and servicing agreements leads mortgage servicers to prefer foreclosure over modification when they are liquidity constrained. Therefore, a positive liquidity shock is expected to...

Cybersecurity breaches pose a substantial privacy concern in the digital era. We investigate how customers respond to privacy leakage in multiple unexpected data breaches. Difference-in-differences estimates show that digital payments declined by 4.6% ~ 7.5% relative to cash payments immediately...

This paper examines whether and to what extent loan officers' labor mobility affects the origination and modification of U.S. residential mortgage loans. Our identification relies on a spatial regression discontinuity design instituted by staggered adoption of the inevitable disclosure doctrine...