This paper takes a skeptical look at a leading argument about what is causing the foreclosure crisis and what should be … done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on a mortgage and … illustrate that unaffordable loans, defined as those with high mortgage payments relative to income at origination, are unlikely …

We evaluate the effects of laws designed to protect borrowers from foreclosure. We find that these laws delay but do …. We find that the right-to-cure law lengthens the foreclosure timeline but does not lead to better outcomes for borrowers. …

In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale … complete the foreclosure process, and go to zero about a year after the bank sells the property to a new homeowner. The … shows that policies that slow the transition from delinquency to foreclosure likely exacerbate the negative effect of …

In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale … the foreclosure process, and go to zero about a year after the bank sells the property to a new homeowner. The estimates … shows that policies that slow the transition from delinquency to foreclosure likely exacerbate the negative effect of …

means of past mortgage deliquency rates. We give a statistical evidence that the non-normal model is much more suitable than …

We estimate a model of foreclosure using a data set that includes every residential mortgage, purchase-and-sale, and … foreclosure transaction in Massachusetts from 1989 to 2008. We address the identification issues related to the estimation of the … occurred in Massachusetts between 2005 and 2008 and conclude that the foreclosure crisis was primarily driven by the severe …

This paper takes a skeptical look at a leading argument about what is causing the foreclosure crisis and what should be … done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on the mortgage … illustrate that unaffordable" loans, defined as those with high mortgage payments relative to income at origination, are unlikely …

discussions of the mortgage market to see what market participants thought would happen, the authors find that analysts, on the …

We present 12 facts about the mortgage crisis. We argue that the facts refute the popular story that the crisis … resulted from finance industry insiders deceiving uninformed mortgage borrowers and investors. Instead, we argue that borrowers … prices. We then show that neither institutional features of the mortgage market nor financial innovations are any more likely …