This paper quantitatively accounts for the cyclical dynamics of key macroeconomic housing and mortgage market variables … using a tractable, searchtheoretic model of housing with equilibrium mortgage default. To explain these dynamics, the model … constraints. During housing busts, longer selling times spill over into higher foreclosure risk, thereby magnifying the response …

time-to-sell determines the mortgage standards of competitive lenders, measured by the maximum loan-to-value (LTV) ratio …

The Great Recession led to widespread mortgage defaults, with borrowers resorting to both foreclosures and short sales … transact at 9.2% to 10.5% higher prices on average than those that sell after foreclosure. Short sales also exert smaller … a foreclosure. So why weren’t short sales more prevalent? These home price benefits did not increase the prevalence of …

This paper reviews recent research on mortgage default, focusing on the relationship of this research to the recent … foreclosure crisis. Research on defaults was advanced both theoretically and empirically by the time the crisis began, but … explicitly addressing reverse causality between rising foreclosures and falling house prices. Mortgage defaults were also a key …

conditions required by the banking system to grant a mortgage. The authors find that easier access to credit inflates housing …

This paper investigates the housing and mortgage markets by means of an agent-based macroeconomic model of a credit … households’ creditworthiness conditions required by banks in order to grant a mortgage. Results show that easier access to credit …

How did pricing for mortgage credit risk change during the years prior to the 2008 financial crisis? Using a database … from a major American bank that served as trustee for private-label mortgage-backed securitized (PLS) loans, this paper … risk factors, FICO score and loan-to-value ratios, have less of an impact on mortgage pricing over time. As the volume of …

Borrowers in states with non-recourse mortgage law face limited liability on their mortgage loans. We show that non …. We find that mortgage lending pricing does not fully reflect the higher risk in non-recourse states because the emergence …

have higher mortgage delinquency and charge-off rates and significantly higher probabilities of failure during the last … stronger capital buffers. Our results suggest that there is scope for improved measures of mortgage loan risk that could be …