This study proposes a lifetime utility maximization model, where borrowers choose optimal mortgage bundles including … mortgage type, LTV and loan size to maximize their allocation of limited budgets between housing and non-housing consumptions …. The model predicts that the mortgage bundles choice by borrowers of different income and risk attributes explains …

An estimated 12.6% of primary mortgage loans were simultaneously originated with a second loan from 2004 until 2008 …

This paper presents a framework for estimating losses in the residential real estate mortgage portfolios of German …-trigger hypothesis of mortgage defaults. In order to analyse the possible credit losses stemming from residential mortgage lending we … then use the model to run a top-down stress test and simulate losses on the individual bank level for the years from 2018 …