The decision to foreclose on a CMBS mortgage is made by the special servicer. A mortgage loan is in special servicing …. We develop a model and demonstrate how compensation incentives interact and influence a special servicer's foreclosure … problem whereby foreclosure represents a discrete terminal state of an optimal stopping problem. This model thus captures the …

The decision to foreclose on a CMBS mortgage is made by the special servicer. A mortgage loan is in special servicing …. We develop a model and demonstrate how compensation incentives interact and influence a special servicer's foreclosure … problem whereby foreclosure represents a discrete terminal state of an optimal stopping problem. This model thus captures the …

Does securitization distort the foreclosure decisions of non-performing mortgages? In a model of mortgage … securitized mortgages. Our model yields novel testable predictions on the effect of mortgage securitization on foreclosure rates …-backed securitization with an endogenous foreclosure policy, we find that the securitizing bank adopts a tougher foreclosure policy than the …

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 …