This paper analyzes the performance of low income and minority mortgages (LIMMs) from a large sample of fixed rate … conventional conforming mortgages. We test the extent to which exercise of prepayment and default options differ across groups. In …

Fixed-rate mortgages (FRMs) dominate the U.S. mortgage market, with important consequences for household risk … freezes, the share of FRMs is sharply higher among mortgages eligible to be securitized through the still-liquid agency MBS … rate risk embedded in these loans. We highlight policy implications for ongoing reform of the U.S. mortgage finance system. …