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 The Role of Borrower Attributes in Mortgage Loan Pricing written by Pierre A. Ellis and published by . This book was released on 1985 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 Household Credit Usage written by B. W. Ambrose and published by Springer. This book was released on 2007-10-29 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: In response to growing interest in household finance, this collection of essays with a foreword by John Y. Campbell, studies household and consumer use of credit instruments. It shows how individual consumers and households utilize various credit alternatives in managing their consumption and savings and suggests areas for future research.
Download or read book Mortganomics a Critical Examination of Mortgage Lending Practices Pricing and Predatory Abuses written by Terry L. Donovan and published by Smart Books LLC. This book was released on 2009-04-20 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mortganomics teaches readers how to successfully negotiate the terms of a home mortgage with any bank, mortgage lender or broker. It provides detailed examples how lenders price their home loans and how they can subjectively increase a customer's interest rate to create larger commissions and loan costs. It includes samples of lender's rate sheets showing their wholesale costs for the individual interest rates, and explains how to make a lender guarantee that they will charge only their required minimum fees, and nothing extra that would increase force the borrower to take a higher interest rate. It gives readers a step-by-step verifiable method for paying off their mortgage years early, and an easy method to evaluate how competitive their interest rate and terms are in the marketplace. The book sugar coats nothing when it comes to exposing the ways lenders mark up their costs at a borrower's expense, and the ways that they hide important facts from their customers. This book provides dozens of easy to understand loan pricing calculations that readers can use to negotiate their loan terms and detect predatory lending practices.
Download or read book Residential Mortgage Default written by Wayne R. Archer and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: House price volatility; lender and borrower perception of price trends, loan and property features; and the borrower's put option are integrated in a model of residential mortgage default. These dimensions of the default problem have, to our knowledge, not previously been considered altogether within the same investigation framework. We rely on a sample of individual mortgage loans for twenty counties in Florida, over the period 2001 through 2008, third quarter, with housing price performance obtained from repeat sales analysis of individual transactions. The results from the analysis strongly confirm the significance of the borrower's put as an operative factor in default. At the same time, the results provide convincing evidence that the experience in Florida is in part by lenders and purchasers exhibiting euphoric behavior such that in markets with higher price appreciation there is a willingness to accept recent prior performance as an indicator of future risk. This connection illustrates a familiar moral hazard in the housing market due to the limited information about future prices.
Download or read book The American Mortgage System written by Susan M. Wachter and published by University of Pennsylvania Press. This book was released on 2011-05-31 with total page 399 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successful home ownership requires the availability of appropriate mortgage products. In the years leading up to the collapse of the housing market, home buyers frequently accepted mortgages that were not only wrong for them but catastrophic for the economy as a whole. When the housing market bubble burst, so did a cornerstone of the American dream for many families. Restoring the promise of this dream requires an unflinching inspection of lending institutions and the right tools to repair the structures that support solid home purchases. The American Mortgage System: Crisis and Reform focuses on the causes of the housing market collapse and proposes solutions to prevent another rash of foreclosures. Edited by two leaders in the field of real estate and finance, Susan M. Wachter and Marvin M. Smith, The American Mortgage System examines key elements of the mortgage meltdown. The volume's contributors address the influence of the Community Reinvestment Act, which is often blamed for the crisis. They uncover how the government-sponsored enterprises Fannie Mae and Freddie Mac invested outside the housing market with disastrous results. They present surprising information about low-income borrowers and the strengths of local banks. This collection of thoughtful studies includes extensive analysis of loan practices and the creation of unstable mortgage securities, presenting data largely unavailable until now. More than a critique, The American Mortgage System offers solutions to the problems facing the future of American home ownership, including identifying asset price bubbles, calculating risk, and preventing discrimination in lending. Measured yet timely and by turns provocative, The American Mortgage System provides a careful assessment of a troubled but indispensable part of the economic and social structure of the United States. This book is a sound investment for economists, urban planners, and all who shape public policy.
Download or read book Mortgage Interest Rate Problem written by United States. Congress. Senate. Committee on Banking and Currency and published by . This book was released on 1953 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Adjustable Rate Mortgages ARM s written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development and published by . This book was released on 1984 with total page 988 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Foreclosure of America written by Adam Michaelson and published by Penguin. This book was released on 2009-01-06 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Now in paperback-an inside look at Countrywide Home Loans and the mortgage crisis, from a former mortgage lender executive. In July 2004, Adam Michaelson attended a high-level meeting at Countrywide Financial headquarters about a new loan product that would allow borrowers to pay less than their minimum monthly payment. The "finance jocks" believed that the booming housing market would only get bigger, supporting homeowners in a cycle of borrowing against their houses and refinancing later. They were wrong. And when the bottom dropped out, Countrywide suffered the consequences-as did millions of Americans. With an insider's knowledge and thorough reporting on the impact on American families and the ripple effects on the economy, Michaelson examines the marketing of a mirage and the bad business decisions that destroyed a company, confronts the ethical questions that have arisen in the wake of the foreclosure crisis, and offers creative proposals to prevent such a meltdown from ever happening again.
Download or read book Market Structure and Mortgage Pricing written by Abdullah A. Al-Bahrani and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Wall Street and the Financial Crisis The role of high risk home loans April 13 2010 written by United States. Congress. Senate. Committee on Homeland Security and Governmental Affairs. Permanent Subcommittee on Investigations and published by . This book was released on 2010 with total page 942 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Paying Too Much written by Neil Bhutta and published by . This book was released on 2021 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using administrative data on mortgage rates that borrowers obtain and on rates that lenders could provide for the same loan, we find that many homebuyers significantly overpay for their mortgage, particularly those least likely to be financially savvy. For example, one quarter of government-insured borrowers, who tend to be lower-income first-time homebuyers, pay at least 45 basis points more than their median available rate-equivalent to an upfront payment (in points) of $5,400 for a typical loan. We further document considerable dispersion in the interest rates that identical borrowers get, even from the same lender and loan officer, suggesting important roles for shopping and negotiation. Across time, we find that overpayment tends to decrease as market rates rise and, using new survey data, provide direct evidence that borrowers shop more when market rates are higher, suggesting that behavioral forces affect search effort. More generally, we use the survey data to demonstrate that a significant amount of the mortgage rate variation across consumers can indeed be traced to heterogeneity in financial knowledge and shopping behavior.
Download or read book Journal of Housing Research written by and published by . This book was released on 2006 with total page 1430 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Role of Lenders in the Home Price Boom written by Richard J. Rosen and published by . This book was released on 2008 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between real estate prices during the home price boom from the late 1990s into 2005 and competition among mortgage lenders. The mortgage lending business, especially with the rise of the originate-to-distribute model, had competitors with very different non-mortgage activities and regulation. I show that in local markets, when banks increased their share of mortgages relative to lenders such as mortgage brokers, home prices started increasing at a faster pace. Home prices also affected market shares, but primarily through changes at the national level. When national home prices increased at a faster pace, there was a shift from banks to mortgage brokers in local markets.
Download or read book Is There Discrimination in Mortgage Pricing written by Harold Alonza Black and published by . This book was released on 2001 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The role of expectations in the market for mortgage loans written by Kay Mitusch and published by . This book was released on 1994 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
