When collateral is safe, there are less opportunities for things to go wrong. We examine matching between collateral and creditors in the commercial real estate mortgage market by comparing loans in commercial mortgage backed securities (CMBS) conduits and bank portfolios. We model CMBS...

This study examines the effect of the opioid epidemic on bank mortgage lending decisions. We find that mortgage loan applications of risky borrowers with larger local opioid exposure are less likely to be approved. We use various fixed effects and matched loan analysis to identify consistent...

Mortgage capital remains key to accessing the best neighborhoods and public services, as well as building wealth among lower-income Americans; yet we know little about how increasing diversity impacts mortgage outcomes. For the top 100 metropolitan areas, pre and post-recession mortgage...

It is widely perceived that the supply of mortgages, especially since the extensive liberalization of the mortgage market of the 1980s, has had implications for the housing market in the Netherlands. In this paper we introduce a new method to estimate a credit condition index (CCI). The CCI...

The 2010s saw a profound shift towards jumbo mortgage lending by large banks that are regulated under the Dodd-Frank Act. Using data from the Home Mortgage Disclosure Act, we show that the "jumbo shift" is correlated with being subject to the Comprehensive Capital Analysis and Review (CCAR)...

Approximately two thirds of American families own a home and for most homeowners, their house is also their most important source of wealth. Homeowners are currently sitting on historically high levels of home equity and the potential withdrawal of this home equity has important implications for...

Mortgages are priced alone two dimensions – the interest rate and the leverage. This paper develops a simple model of a mortgage contract, in which differences in the borrower and the lender's risk preference jointly determine the equilibrium interest rate and leverage. This model provides...

The volume of housing mortgage loans (HML) (Rb 985.29 bn) originated during January-November 2015 fell against the volume of HML originated over the same period of 2014 by 32.66% in quantitative terms and by 35.92% in monetary terms. The share of past-due debt in residual debt on HML for...

This paper examines the potential market impacts of continuous forbearance mortgages (CFM). This mortgage design embeds an insurance contract at origination that reduces the interest bearing balance to the smaller of the unpaid balance and an estimate of the current home value in exchange for an...

We present a dynamic structural model of subprime adjustable-rate mortgage (ARM) borrowers making payment decisions, taking into account possible consequences of different degrees of delinquency from their lenders. We empirically implement the model using unique data sets that contain...