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The Impact of Credit Risk Mispricing on Mortgage Lending During the Subprime Boom

Kahn, James A. - 2019

We provide new evidence that credit supply shifts contributed to the U.S. subprime mortgage boom and bust. We collect … original data on both government and private mortgage insurance premiums from 1999-2016, and document that prior to 2008 …

Persistent link: https://www.econbiz.de/10012889447

Consumer Ruthlessness and Mortgage Default During the 2007 to 2009 Housing Bust

Bhutta, Neil - 2017

From 2007 to 2009 U.S. house prices plunged and mortgage defaults surged. While ostensibly consistent with widespread … “ruthless default,” analysis of detailed mortgage and house price data indicates that borrowers do not walk away until they are …

Persistent link: https://www.econbiz.de/10012976495

The Determinants of Subprime Mortgage Performance Following a Loan Modification

Schmeiser, Maximilian D. - 2015

We examine the evolution of mortgage modification terms obtained by distressed subprime borrowers during the recent …-modification mortgage outcomes. We find that principal reductions are particularly effective at improving loan outcomes, as high loan …

Persistent link: https://www.econbiz.de/10013011769

Asymmetric Information and Subprime Mortgage Default

An, Xudong - 2015

, and its relationship with mortgage default. We find that lender effort to collect soft information is intertwined with … adversely select. The development and expansion of securitization has diminished soft information while increasing borrower …

Persistent link: https://www.econbiz.de/10013012127

What Broker Charges Reveal About Subprime Mortgage Credit Risk

Berndt, Antje - 2020

Prior to the subprime crisis, mortgage brokers charged higher fees for subprime loans that turned out to be riskier ex … impact mortgage lending …

Persistent link: https://www.econbiz.de/10012857575

Subprime Mortgage Default in Minority Neighborhoods

Connolly, Robert A. - 2016

In this paper, we empirically examine differences in subprime borrower default decisions by Census tract characteristics in order to clarify how the subprime foreclosure crisis played out in minority areas. An innovation in our modeling approach is that we do not constrain the impact of...

Persistent link: https://www.econbiz.de/10012988155

Introduction of Credit Scores and Subprime Lending in Minority Neighborhoods

Jakucionyte, Egle; Singh, Swapnil - 2021

scores by the Government Sponsored Enterprises (GSEs) in mortgage underwriting to answer this question. The use of credit … minority neighborhoods more. The level of securitization by the GSEs in minority neighborhoods also decreased …

Persistent link: https://www.econbiz.de/10013215740

What broker charges reveal about mortgage credit risk

Berndt, Antje; Hollifield, Burton; Sandås, Patrik - 2017

Prior to the subprime crisis, mortgage brokers charged higher percentage fees for loans that turned out to be riskier … residential mortgage securitizations. …

Persistent link: https://www.econbiz.de/10011595598

Redefault risk in the aftermath of the mortgage cisis : why did modifications improve more than self-cures?

Calem, Paul Seth; Jagtiani, Julapa; Maingi, Raman Quinn - 2018

This paper examines changes in the redefault rate of mortgages that were selected for modification during 2008-2011, compared with that of similarly situated self-cured mortgages. We find a large decline in the redefault rate of both modified and self-cured mortgages over this period, but the...

Persistent link: https://www.econbiz.de/10011971144

Repayment capacity, debt service ratios and mortgage default : an exploration in crisis and non-crisis periods

O'Toole, Conor; Slaymaker, Rachel - 2020

In this paper, we explore the impact of current household repayment capacity on mortgage default using household …

Persistent link: https://www.econbiz.de/10012170652