We conduct an empirical investigation of the relative importance of competing hypotheses that attempt to explain observed differentials in overage pricing. Our analysis makes several contributions. First, we use tobit techniques to estimate the parameters of the model. Second, we include a...

Overages, or yield spreads, are common in the pricing of mortgages. However, few customers realize that such yield spreads exist. Given that overages often constitute a significant portion of the income of the mortgage loan officer, one would assume that the loan officer seeks to maximize the...

We develop and apply a valuation model that quantifies the interest rate risk inherent in fixed rate reverse mortgages. Consistent with intuition, our results show that the interest rate risk of a reverse mortgage is greater than that of either a typical coupon bond or a regular mortgage....

We use a discrete choice recursive model to classify 629 companies with dividend reinvestment plans (DRIPs) in 1999 and 514 companies without them. Our model classifies 72.0% of companies correctly. We interpret misclassified companies as being likely to switch their plan status. For example, if...

We conduct an empirical investigation to explain observed differentials in mortgage overage pricing. Our analysis makes several contributions. First, we study an area of mortgage pricing that is little understood by consumers and has received little scrutiny in the literature. Second, we...

Overages, or yield spreads, are common in the pricing of mortgages. However, few customers realize that such yield spreads exist. Given that overages often constitute a significant portion of the income of the mortgage loan officer, one would assume that the loan officer seeks to maximize the...

Mortgage overage pricing is little understood by consumers and has received little academic scrutiny. We consider the impact of the market power of individual loan officers on overages paid by borrowers, particularly minorities. We include numerous borrower and lender characteristics unavailable...

The main objective of this paper is the construction of an expanded model of housing choice that includes not only tenure choice, which has traditionally been the subject of analysis, but also other housing characteristic choices. In this model the probability of the household making a given...

We develop and apply a valuation model that quantifies the interest rate risk inherent in fixed-rate reverse mortgages. Consistent with intuition, our results show that the interest rate risk of a reverse mortgage is greater than that of either a typical coupon bond or a regular mortgage....

Inflation affects homeownership and housing adversely through the "real-payment tilt" of the conventional mortgage. Expectations of additional housing price appreciation, however, may induce households to invest in housing. This paper uses household data to estimate the demand for homeownership...