This paper studies the Continuous Workout Mortgage (CWM), a two in one product: a fixed rate home loan coupled with … that mortgage values and payments should be linked to housing prices and adjusted downward to prevent negative equity. We … within amortizing mortgage context. We derive new closed-form and new analytical approximation methodologies which apply both …

mortgage and unsecured credit markets to assess the impact of this reform on the severity of the housing crisis during the … Great Recession. We find that while this reform increased the relative attractiveness of mortgage default, its impact on the … housing market during the crisis was largely mitigated by general equilibrium effects on mortgage lending standards. Allowing …

This paper reviews recent research on mortgage default, focusing on the relationship of this research to the recent … explicitly addressing reverse causality between rising foreclosures and falling house prices. Mortgage defaults were also a key … researchers to explore the central unsolved question in this area: why mortgage default is so rare, even for households with high …

potentially unsustainable mortgage payments. Many of these households must rearrange their mortgage obligations as they enter … their retirement years. Even though most homeowners nearing retirement age have a zero or reasonable mortgage obligation an … prices and prolong and exacerbate the current mortgage crisis …

Home appraisals are produced for millions of residential mortgage transactions each year, but appraised values are … institutional framework that governs mortgage lending lead to information loss in appraisals (that is, appraisals set equal to the … incidence of mortgage default at loan-to-value boundaries (notches) above which mortgage insurance rates increase. Appraisals …

How much can government-driven mortgage modification programs reduce the mortgage default rate? I compare an economy … foreclosure rate. Through loan modification, mortgage servicers can mitigate their losses and households can improve their … rate of 0.68%. My quantitative exercises show that current government efforts to promote mortgage modifications reduce the …

-transfer and default probabilities to gauge the severity of informational asymmetries in the loan securitization market. First, the …

We study whether and how corporate loan securitization through collateralized loan obligations (CLOs) has changed the … business from the same borrower. The new loans from this securitization-funded relationship lender, when compared to loans from … securitized. Our results suggest that lending relationship is impaired as securitization weakens monitoring efforts and reduces …