Mortgage (mis)pricing: The case of co-borrowers

Konstantinos Tzioumis ()

Journal of Urban Economics, 2017, vol. 99, issue C, 79-93

Abstract: This paper provides evidence for a performance differential between loans with one borrower and loans with two borrowers. We argue that the choice of observables considered during the rate adjustment process may lead to mortgage mispricing for loans with co-borrowers. Our findings offer an example of borrower-level information that mortgage lenders collect, which is not used in pricing, but is predictive of performance.

Keywords: Risk-based pricing; Mortgage contract design (search for similar items in EconPapers)
JEL-codes: G21 G23 R00 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0094119016300808
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:99:y:2017:i:c:p:79-93

DOI: 10.1016/j.jue.2016.12.004

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().