Mortgage Curtailment and Its Roles in Mortgage Pricing PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Mortgage Curtailment and Its Roles in Mortgage Pricing PDF full book. Access full book title Mortgage Curtailment and Its Roles in Mortgage Pricing by Qiang Fu. Download full books in PDF and EPUB format.
Author: Qiang Fu
Publisher:
ISBN:
Category : Mortgage loans
Languages : en
Pages : 260
Get Book Here
Book Description
Author: Qiang Fu
Publisher:
ISBN:
Category : Mortgage loans
Languages : en
Pages : 260
Get Book Here
Book Description
Author: Pierre A. Ellis
Publisher:
ISBN:
Category : Credit
Languages : en
Pages : 200
Get Book Here
Book Description
Author: Yingqi Xu
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
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.
Author: B. W. Ambrose
Publisher: Springer
ISBN: 0230608914
Category : Business & Economics
Languages : en
Pages : 293
Get Book Here
Book Description
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.
Author: Terry L. Donovan
Publisher: Smart Books LLC
ISBN: 0615279473
Category : Mortgage loans
Languages : en
Pages : 306
Get Book Here
Book Description
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.
Author: Wayne R. Archer
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
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.
Author: United States. Congress. Senate. Committee on Banking and Currency
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 98
Get Book Here
Book Description
Author: Susan M. Wachter
Publisher: University of Pennsylvania Press
ISBN: 0812204301
Category : Business & Economics
Languages : en
Pages : 399
Get Book Here
Book Description
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.
Author: Adam Michaelson
Publisher: Penguin
ISBN: 1440661936
Category : Business & Economics
Languages : en
Pages : 372
Get Book Here
Book Description
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.
Author: United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development
Publisher:
ISBN:
Category : Adjustable rate mortgages
Languages : en
Pages : 988
Get Book Here
Book Description
