) spreads to a majority (interpretable as prime borrowers). -- Housing demand ; mortgage market ; default risk ; multiple …

) explicit modelling of repayment and interest-only CWMs; (b) closed form formulae for mortgage payment and mortgage balance of a … repayment CWM; (c) a closed form formula for the actuarially fair mortgage rate of an interest-only CWM. For repayment CWMs we …

conditions required by the banking system to grant a mortgage. The authors find that easier access to credit inflates housing …