. This explains the phenomenon of irregularly high early-stage default and prepayment rates observed in residential mortgage … lending in China, where there are few, if any, financial incentives for mortgage borrowers to exercise either put or call … options. Mortgages collateralized by forward housing assets are riskier than are those with underlying assets traded on the …

life-cycle profile of home ownership, and the mortgage default rate. The average coefficients that measure the agents …

This paper links the current sub-prime mortgage crisis to a decline in lending standards associated with the rapid … declines in lending standards by incumbent banks. Finally, lending standards declined more in areas with higher mortgage …

market. The government improved the legal environment for mortgage finance by passing reforms that reduced the average time … facilitating mortgage securitization. …

credit during the financial crisis in the United States. We focus on mortgage lending to minimize the impact of confounding … credit. The disaggregated data on mortgage applications that we use allows us to study the time variations in banksâ …€™ decisions to grant mortgage loans, while controlling for bank, borrower, and regional characteristics. The wealth of data also …

Much of the literature on the economics of mortgage markets has studied the FRM-ARM choice made by individual borrowers … of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research …’s (1986a) model, using it to characterize optimal contracts in the absence of mortgage termination, and then exploring how …

This paper gives a general mortgage model subject to sub-optimal prepayment behavior of borrowers. The proposed … classification of approaches to the option-based and mortgage-rate-based (MRB) specification is validated by the fact that these two … approaches require different analytical and numerical tools. With the option-based specification of the prepayment intensity, our …

mortgage servicing contracts for both adjustable rate and fixed rate mortgages. The valuation model is comprised of an … exogenous OTS prepayment model, a stochastic interest rate process, and other servicing fees and costs, all of which jointly … the price of mortgage servicing rights to the changes in the economic environment is also analyzed. This work is …