Download or read book Essays on Mortgage Curtailment written by Yingqi Xu and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines mortgage curtailment, an important household deleverage channel that has received little attention in the literature. In the first chapter, using Fannie Mae single-family loan performance data, I show that more than 20% of mortgage borrowers opt to curtail their mortgage payments in a given quarter if their mortgage was originated after 2009. These borrowers pay an additional USD500, which represents over 50% of their monthly mortgage payment and 15% of their income. Mortgage origination conditions matter more than mortgage lifetime events in determining curtailment. Mortgages originated after 2009 have a higher propensity for mortgage curtailment compared to those originated before 2009, at 22% versus 14%. Observable mortgage characteristics account for 60% of this difference, with higher income, higher credit scores, and lower debt-to-income ratios positively correlated with a higher curtailment propensity. Moreover, borrowers use curtailment as an alternative to refinancing when refinancing is not cost-effective in reducing interest costs, as shown by the negative correlation between mortgage rate incentive and curtailment propensity. In the second chapter, I investigate borrowers' mortgage curtailment behavior after refinancing through the HARP program. On average, borrowers who refinance through HARP pay USD223 more per month than before they enter the program, which is equivalent to 18.7% of the monthly required mortgage payment. Additionally, higher income, higher credit scores borrowers, and mortgages with lower origination LTV ratios tend to contribute more. To address the endogeneity issue, I use the quasi experiment setup of the HARP program's eligibility condition. The results suggest that HARP eligibility leads borrowers to curtail USD37.7 more than ineligible borrowers, with high original LTV borrowers being more likely to contribute more. Households increase curtailment while both income effect and intertemporal substitution effect are at play, indicating that they are more sensitive to changes in liquidity than to changes in mortgage rates.

Download or read book Essays on Mortgage Default written by Jennifer Paniza Bontas and published by . This book was released on 2011 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditionally, when attempting to forecast the likelihood of default, mortgage investors have focused primarily on the current amount of home equity and the borrower's credit quality, as well as other secondary factors such as loan characteristics, payment history, etc. This paper explores an additional factor: the impact of the combined loan to value ratio at origination holding the current loan to value constant. Using loan-level time series data for 2000 to 2009 that I collected myself from one of the largest mortgage trustees in the U.S. and home price index data from Zillow, I estimate a logit model that predicts the probability of falling behind on a mortgage. I find that the average borrower in the sample (with respect to observables other than CLTV at origination) who initially puts down 10% of the value of the home when taking out the loan is 1.25 times less likely to go delinquent when his current CLTV reaches 120 than a borrower who initially put down no money. Further more, I analyze geo-spatial trends in mortgage foreclosures over the last decade in the United States using non-agency loan-level data from one of the largest mortgage trustees in the country. I find that following the collapse of home prices many states that experienced relatively high home price appreciation before the 2007 housing market crash had some of the highest foreclosure rates in the country. I also find evidence supporting the hypothesis that subprime borrowers need only a negative shock to home equity to go delinquent, whereas prime borrowers need both negative home equity and unemployment shocks. Using a subset of the loan data, I estimate the effect of lagged neighborhood mortgage foreclosure rates on the borrowers' decisions to become delinquent on their home loans. While I find serial correlation in the mortgage default decision, I am unable to distinguish between competing explanations such as an unobserved shock, spread of information on how costly it is to go through default, lending to riskier individuals due to improved monitoring technology, and changes in cultural attitudes towards default.

Download or read book Three Essays on Mortgage Default written by Hrishikesh Singhania and published by . This book was released on 2014 with total page 177 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays on mortgage default. The first essay discusses the determinants of mortgage default. The financial crisis of 2007-2008 was precipitated by default in subprime mortgages. This episode spurred a lot of research on mortgage default. The essay surveys this research with a focus on what determines mortgage default. It emphasizes that the market value of home equity determines default, not the book value of equity.

Download or read book Mortgage Curtailment and Its Roles in Mortgage Pricing written by Qiang Fu and published by . This book was released on 1998 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two Essays on Subprime Mortgage Lending written by Wei Yu and published by . This book was released on 2007 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Behavior of Mortgage Borrowers written by Raphael O. Kuznetsovski and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Mortgage Finance written by Harvey Hugh Stephenson and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Mortgage Credit Risk written by Fan Wang (Ph. D.) and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Mortgage Debt Payment written by Meagan Nicole McCollum and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Mortgage Market written by Munpyung O and published by . This book was released on 2010 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first paper reviews the existing theoretical work on the option-theoretic mortgage valuation. The mortgage market has become an increasingly important segment of the financial market. There are two strands in the mortgage valuation literature; reduced-form (econometric) and structural-form (option-theoretic) valuation model. The option theoretic model provides clear endogenous explanations as to why the mortgage termination occurs. This approach shows that the mortgage value is determined by the interaction between the contractual features of mortgages and the uncertain future economic environment.

Download or read book Three Essays on Mortgage Refinancing written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Mortgage Portfolio Diversification written by Timothy Patrick Dombrowski and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Astute Judical Judgements and Essays written by Festus Emiri and published by African Books Collective. This book was released on 2022-08-16 with total page 654 pages. Available in PDF, EPUB and Kindle. Book excerpt: The judgments that are published in this book reveal Justice Nayai Aganaba of Nigeria's knowledge of the law, candour and judicial acumen. Written by respectable authors, including Judges, academics, practising lawyers some of whom are Senior Advocates of Nigeria, the essays will be useful not only for lawyers, but also for law students who will appreciate the lack of jargon used.

Download or read book Essays on Information Frictions and Foreclosure Prevention written by Lauri Valtteri Kytömaa and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mortgage foreclosure has broad social costs that impact all participants in housing markets. Due to these costs, and the reluctance of mortgage servicers to independently renegotiate with borrowers, governments often provide direct incentives to servicers for granting debt forgiveness to financially distressed borrowers, instead of foreclosing on their homes. This dissertation investigates economic frictions that impede the provision of debt relief to residential mortgage borrowers experiencing financial distress. In the first chapter, I highlight the contribution of this dissertation to the literature, provide an overview of the mortgage foreclosure crisis in the United States, illustrate the central economic forces of this project with a theoretical model, and describe the residential mortgage data used in my empirical work. The theoretical model focuses on how information asymmetry between a mortgage servicer and his borrowers can lead to market unraveling, in the sense that no borrower receives debt relief even if granting it would be social-welfare improving. The chapter concludes with reduced-form evidence on the causal effect of debt relief through loan-term modifications on the probability of foreclosure. In the second chapter, I present an empirical model of foreclosure prevention and report estimated results based on my sample. Consistent with recent work in the economics literature, my results also suggest that historical estimates for the social costs of foreclosure are too low, while also highlighting how information asymmetry can lead to the misallocation of debt relief. I find that there are significant benefits in correctly targeted relief for both borrowers and their servicers. Nevertheless, I also find that the social loss from failing to grant a modification that would prevent a foreclosure is significantly larger than the private loss for a loan servicer. Conversely, the social loss from incorrectly granting a modification to a borrower that did not need it is much smaller than the private loss faced by the servicer. The relationship between private and social losses of modification highlight how servicer incentives can impede socially beneficial debt relief to borrowers. In the third chapter, I leverage my results to study the effectiveness of the Federal Government's Home Affordable Modification Program (HAMP), which was launched in 2009 in response to mounting U.S. foreclosures. My empirical framework allows me to quantify the effects of government incentive payments granted to loan servicers and to assess the level of relief granted under the program

Download or read book An Essay on the Principle of Population Or A View of Its Past and Present Effects on Human Happiness written by Thomas Robert Malthus and published by . This book was released on 1807 with total page 570 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book How to Make Money in a Mismanaged Economy and Other Essays written by William Krehm and published by COMER Publications. This book was released on 1980 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Essay on the Principle of Population Or A View of Its Past and Present Affects on Human Happiness written by Thomas Robert Malthus and published by . This book was released on 1807 with total page 564 pages. Available in PDF, EPUB and Kindle. Book excerpt: