individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks …

a house in coastal areas may be at increasing risk of defaulting on their mortgage. Commercial banks have the ability to … Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, known as Freddie Mac. In … or default. A structurally estimated model of mortgage pricing with asymmetric information suggests that bunching at the …