Mortgage modifications have become an important component of public interventions designed to reduce foreclosures. In this paper, we examine how the structure of a mortgage modification affects the likelihood of the modified mortgage re-defaulting over the next year. Using data on subprime...

We study early default, defined as serious delinquency or foreclosure in the first year, among nonprime mortgages from the 2001 to 2007 vintages. After documenting a dramatic rise in such defaults and discussing their correlates, we examine two primary explanations: changes in underwriting...

The lack of property tax escrow accounts among subprime mortgages causes borrowers to make large lump-sum tax payments that reduce liquidity. Different property tax collection dates across states and counties create exogenous variation in the time between loan origination and the first property...

This paper models the historical default and prepayment behavior for subprime mortgages using data on securitized mortgages originated from 2000 to 2007. I find that more recently originated subprime loans are more likely to default, well ahead of their first mortgage rate resets, and less...

Although similar in many ways, subprime hybrids were really different from prime hybrids.

This month's newsletter covers the topic of subprime mortgage lending, with data and explanations you may find useful. The subprime market has been a closely covered news topic of late.

The conference "Preserving Homeownership: Addressing the Foreclosure Issue, “held in Dallas in June, opened with a panel of Texas researchers who addressed the impact foreclosures are having on the U.S. and Texas economies.

Homeownership doesn't just provide people a place to live. It also enables them to accumulate wealth by saving more and building equity in their homes.

Booms and busts have played a prominent role in American economic history. In the 19th century, the United States benefited from the canal boom, the railroad boom, the minerals boom, and a financial boom. The 20th century brought another financial boom, a postwar boom, and a dot-com boom. ; The...