This study analyzes the effects of state bankruptcy asset exemptions and foreclosure laws on mortgage default and foreclosure rates across different segments of the mortgage market. We found that the effects of these legal provisions are larger for sub-prime than for prime mortgages and larger...

We analyze the effects of state predatory mortgage lending laws, which have been a model for recent changes in the United States Federal legislation enacted to regulate the mortgage contract terms common in higher-risk mortgage market segments. Using the Rothschild-Stiglitz approach to model...

This study analyzes whether bankruptcy asset exemptions and state foreclosure laws affect borrowers' decisions to default on their mortgages and the lenders' incentives to settle the default outside the foreclosure. Using a rigorously specified empirical model and accounting for endogenous loan...