defaulters have both negative equity and enough liquid or illiquid assets to make one month's mortgage payment. This finding …

homeowner only once the loan is repaid. By effectively reducing the LTV of the mortgage, it increases the homeowner's incentives …

We study the exposure of mortgage borrowers in Switzerland to interest rate, income and house price risks and examine … analysis is based on a unique data set of household mortgage applications from September 2012 until January 2014. Our … assessment of risk exposure among mortgage borrowers in Switzerland is highly sensitive to the underlying assumptions on mortgage …

Using Danish household level data, we find that a relatively large share of total interest-only mortgage debt is held …

This paper assesses the relative importance of two key drivers of mortgage default: negative equity and illiquidity. To … do so, the authors combine loan-level mortgage data with detailed credit bureau information about the borrower's broader … authors find that both negative equity and illiquidity are significantly associated with mortgage default, with comparably …

) 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 …

In the wake of the financial crisis, mortgage lending to lower-income and minority borrowers overcorrected and has not …, mortgage regulation, and housing finance are needed to remove artificial institutional barriers to the flow of responsible … term, mortgage finance could be re-envisioned to integrate housing counselors, real estate professionals, and economists …

Using a monthly panel dataset of individuals' debt composition including mortgage and nonmortgage consumer credit, we … homeowners reoptimize their debt structure by using withdrawn home equity to pay down comparatively expensive short-term non-mortgage …

We study the causal effect of mortgage rate changes on consumer spending, debt repayment, and defaults during an … interest rates of short-term fixed-rate mortgages (the dominant product in Canada's mortgage market) have to be reset according … variation in the timing of mortgage rate resets. We find asymmetric responses of consumer durable spending, deleveraging, and …

households indicates that the improvement in the ability of the latter to sustain a mortgage was counterbalanced by a tighter … and the slope of the ‘mortgage affordability curve', the curve that shows the share of eligible households at different … lowered the share of eligible families at high LTVs and mildly increased it at lower LTVs. Moreover, we find that mortgage …