. Consequently, shocks that lower house prices may trigger one of the necessary conditions for default: negative equity. A common … alternative contract attempts to prevent default by imposing full-recourse. This may cause individuals who believe they are likely … to default to rent; however, it does not prevent those who buy from experiencing negative equity. I consider a contract …

(including unsecured debt, liquid assets, and illiquid assets) play in default decisions. In sharp contrast to prior studies that … strongest predictor of default. We find that individual unemployment increases the probability of default by 5 - 13 percentage … points, ceteris paribus, compared with the sample average default rate of 3.9 percent. We also find that only 13.9 percent of …

purchase mortgages to subprime borrowers. We also document that the expansion in speculative mortgage products and underwriting …

borrowers' default rates on mortgages and nonmortgage debts by about 40 percent and 25 percent, respectively. Refinancing also …

Encouraging consumers to seek out and switch to lower-rate mortgages is important both for the individual consumer …

data from a major Danish bank. We examine the behavior of borrowers with adjustable rate mortgages, and exploit that the …

' current debt service ratio. In doing so we address gaps in the existing literature on modelling default and stress testing … increase in new default flows. We also test for heterogeneous effects across households and find younger, low income households …