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House money and entrepreneurship
Pekkala Kerr, Sari; Kerr, William R.; Nanda, Ramana - 2015
through the collateral channel tends to be longer-lived and more balanced across sectors. The collateral channel is a tenth or …
Persistent link: https://www.econbiz.de/10011305112
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Second liens and the holdup problem in mortgage renegotiation
Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; … - 2014
When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...
Persistent link: https://www.econbiz.de/10010353293
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Collateral Valuation and Borrower Financial Constraints : Evidence from the Residential Real Estate Market
Agarwal, Sumit - 2014
Financially constrained borrowers have the incentive to influence the appraisal process in order to increase borrowing or reduce the interest rate. We document that the average valuation bias for residential refinance transactions is above 5%. The bias is larger for highly leveraged...
Persistent link: https://www.econbiz.de/10013065882
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Collateral Valuation and Borrower Financial Constraints : Evidence from the Residential Real Estate Market
Agarwal, Sumit - 2013
Financially constrained borrowers have the incentive to influence the appraisal process in order to increase borrowing or reduce the interest rate. We document that the average valuation bias for residential refinance transactions is above 5%. The bias is larger for highly leveraged...
Persistent link: https://www.econbiz.de/10013071769
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Homeowner Borrowing and Housing Collateral : New Evidence from Expiring Price Controls
DeFusco, Anthony - 2018
I empirically analyze how changes in access to housing collateral affect homeowner borrowing behavior. To isolate the … role of collateral constraints from that of wealth effects, I exploit the fully anticipated expiration of resale price … collateral that ranges between $0.04-$0.13 and is correlated with homeowners' initial leverage. Additional analysis of …
Persistent link: https://www.econbiz.de/10012936718
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Mortgage Dollar Roll
Song, Zhaogang - 2018
differs from repos in two important ways: the returned collateral can differ from those received, and the MBS ownership …
Persistent link: https://www.econbiz.de/10012938077
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Collateral Misreporting in the Residential Mortgage-Backed Security Market
Kruger, Samuel - 2020
Securitized mortgage appraisals routinely target pre-specified valuations, 45% of purchase loan appraisals exactly equal purchase prices, and appraisals virtually never fall below purchase prices. As a result, appraisals exceed automated valuation model (AVM) valuations 60% of the time and are...
Persistent link: https://www.econbiz.de/10012853873
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The Paradox of Judicial Foreclosure : Collateral Value Uncertainty and Mortgage Rates
Harrison, David M. - 2014
Using a sample of 26,892 rate quotes on home purchase loan applications, the current paper investigates interstate variation in residential mortgage interest rates. More specifically, we find posted rate quotes by lenders are directly related to measures of foreclosure process risk including the...
Persistent link: https://www.econbiz.de/10013051006
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Collateral Pledge, Sunk-Cost Fallacy and Mortgage Default
Agarwal, Sumit - 2014
Individuals and firms pledge collateral to mitigate agency costs or contracting frictions in a world with asymmetric … firms and individuals should default on their debt contract irrespective of the initial collateral pledged. In this paper …, we estimate default models and find that after controlling for mark-to-market asset valuation, initial collateral remains …
Persistent link: https://www.econbiz.de/10013052915
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Reverse Mortgage Demographics and Collateral Performance
Davidoff, Thomas - 2014
poor collateral performance in HECM loans that has been attributed elsewhere to strategic undermaintenance …
Persistent link: https://www.econbiz.de/10013058286