The exact cause of the massive defaults and foreclosures in the U.S. subprime mortgage market is still unclear. This … a role. We measure several aspects of financial literacy and cognitive ability in a survey of subprime mortgage … borrowers who took out mortgages in 2006 or 2007 and match these measures to objective data on mortgage characteristics and …

The exact cause of the massive defaults and foreclosures in the U.S. subprime mortgage market is still unclear. This … a role. We measure several aspects of financial literacy and cognitive ability in a survey of subprime mortgage … borrowers who took out mortgages in 2006 or 2007 and match these measures to objective data on mortgage characteristics and …

This paper focuses on the potential externalities associated with subprime mortgage origination activity. Specifically …, we examine whether negative spillover effects from subprime mortgage originations result in higher default rates in the … neighborhood does not lead to greater default risks for surrounding borrowers. However, we do find that more aggressive mortgage …

A feature of last decade’s mortgage crisis was that the credit risk of borrowers was not accurately priced into their … measured at origination predict a greater probability of delinquency for borrowers who are granted a mortgage. Yet the …

recent subprime mortgage crisis. Why did the financial markets fail to anticipate the recent debt crisis, despite the large … early warning signal of the recent crisis. -- Stochastic optimal control ; dynamic optimization ; mortgage crisis ; Ito …

This study provides the valuation of mortgage insurance (MI) considering upward and downward jumps in housing prices …, which display separate distributions and probabilities of occurrence, and the mortgage insurer's default risk. The empirical … diffusion and the Black-Scholes model, generally used in previous literature, to fit the single-family mortgage national average …

commercial mortgage market …

. Mortgage insurance enables mortgage holders to potentially get compensation for the loss in mortgage investment resulting from … borrower's default and subsequent liquidation. If a mortgage loan becomes delinquent, the borrower may apply for mortgage … modification. According to moral hazard theory, mortgage holders are less likely to accept mortgage modification if mortgages are …

The meltdown in residential real-estate prices that commenced in 2006 resulted in unprecedented mortgage delinquency … following modifications. While modification terms are more favorable for weaker borrowers, greater reductions in mortgage … point decline in mortgage interest rate is associated with a nearly 4 percentage point decline in default probability. This …

The recent financial crisis has led to calls for a better understanding of the reasons behind the increase in mortgage … defaults and the foreclosures that followed. Previous studies using option-based mortgage default models predicted that … borrowers should immediately exercise the default option when the market value of their mortgage exceeds the value of the …