A standard, no-recourse mortgage contract does not adjust when the value of the underlying collateral falls … equilibrium minimum mortgage rate by 90 basis points. The volatility of net cashows to financial intermediaries also increases …

bankruptcies (countercyclical and very volatile). Using a growth model with household heterogeneity in earnings and assets with … household earnings growth accounts for these properties, albeit not for the large volatility of credit. We find that tilting … household consumption towards goods that can be purchased on credit and a slight countercyclicality in the terms of access to …

We build a model of optimal fixed-rate mortgage refinancing with fixed costs and inattention and derive a new …

This paper quantitatively accounts for the cyclical dynamics of key macroeconomic housing and mortgage market variables … using a tractable, searchtheoretic model of housing with equilibrium mortgage default. To explain these dynamics, the model …, the reverse occurs. Based on these insights, I consider a foreclosure reform that makes all mortgages full recourse, and I …

The goal of this paper is to show that household-level financial distress (FD) varies greatly, meaning there is unequal …

We develop a general equilibrium model in which households' mortgage leverage is determined by supply and demand forces …, where the price of credit impacts the quantity of leverage households choose. Mortgages are supplied by financial … intermediaries, who offer households a menu of mortgage contracts whose pricing varies with intermediaries' equity capital. In the …

unpredictability of inflation and price levels (Modigliani, 1974). Real Rate Inflation-Indexed Mortgages (RIMs), or mortgage loans that …We use a model and show how inflation and mortgage loans based on nominal interest rates (NRMs), like FRMs, ARMs or IOs …

can affect household decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt …Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy …, have larger real effects than transitory shocks. The transmission is stronger under adjustable- than fixed-rate mortgages …