Identifying the Effect of Securitization on Foreclosure and Modification Rates Using Early Payment Defaults
Kristopher Gerardi () and
The Journal of Real Estate Finance and Economics, 2014, vol. 49, issue 3, 352-378
This paper develops and estimates an instrumental variables strategy for identifying the causal effect of securitization on the incidence of mortgage modification and foreclosure based on the early payment default analysis performed by Piskorsi et al. (J Financ Econ 97:360–397, 2010 ). Estimation results show that securitized mortgages are more likely to be modified and less likely to be foreclosed on by servicers. These results are consistent with the interpretation in Adelino et al. ( 2009 ) that low modification rates are not the result of contract frictions inherent in the mortgage securitization process. Copyright Springer Science+Business Media New York (outside the USA) 2014
Keywords: Early payment default; Foreclosure; Mortgage; Securitization; D11; D12; G21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jrefec:v:49:y:2014:i:3:p:352-378
Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11146/PS2
Access Statistics for this article
The Journal of Real Estate Finance and Economics is currently edited by Steven R. Grenadier, James B. Kau and C.F. Sirmans
More articles in The Journal of Real Estate Finance and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().