This paper analyzes mortgage lenders' strategy in pricing loans intended for sale to prime market. Using the Single-Family Loan-Level Data set obtained from Freddie Mac, we find evidence that lenders adjust their pricing behavior according to the changing lending environment. In particular,...

Using a representative sample of credit card holders from a Chinese commercial bank with a 10% credit card market share, we investigate how consumers respond to an unexpected interest rate decrease that automatically reduces interest expenses for all mortgagors in the country and thereby...

The recent financial crisis has led to calls for a better understanding of the reasons behind the increase in mortgage defaults and the foreclosures that followed. Previous studies using option-based mortgage default models predicted that borrowers should immediately exercise the default option...