This paper examines how differences in state foreclosure laws influence the incidence of default in the residential … mortgage market. Specifically, we examine how judicial review requirements, lenders' recourse rights (deficiency judgments … crisis. We argue that state foreclosure laws should have little effect on the likelihood of liquidity events (for example …

State foreclosure and bankruptcy laws govern the rights of mortgage lenders and borrowers during foreclosure and … laws on the types of mortgages originated. The empirical identification is based on state-level variations in foreclosure … likely to be originated in states with lender-friendly foreclosure laws. Also, higher-risk loans are less likely to be …

We assess the credit market impact of allowing mortgage "strip-down" as a foreclosure-prevention measure, where strip … effective foreclosure-prevention program, because it would have only small and transient effects on the supply of mortgage loans. …-term reduction in mortgage interest rates and a small, short-term increase in mortgage approval rates, but no long-term effects, and …