In this study, we make use of a massive database of mortgage defaults to estimate REO liquidation timelines and time-related costs resulting from the recent post-crisis interventions in the mortgage market and the freezing of foreclosures due to “robo-signing” revelations. The cost of delay,...

This article performs an exercise in which we identify the potential impact of key drivers of home ownership rates on home ownership outcomes by 2050. We take no position on whether these key determinants in fact will come about. Rather we perform an exercise in which we test for their impact....

The author argues that more than one borrower in every five could face foreclosure absent stronger policy measures. The solution is to (1) reduce the housing supply through a modification program that explicitly addresses negative equity and (2) increase housing demand by expanding the...

This is a discussion of the fundamentals underlying a proprietary thirty-year conventional perfect current-coupon projection model. This model measures the richness or cheapness of the current-coupon mortgage as a function of the fundamental variables that influence mortgage pricing: the level...