The Underlying Determinants of Residential Mortgage Default

Timothy Jones and G. Stacy Sirmans

Journal of Real Estate Literature, 2015, vol. 23, issue 2, 167-205

Abstract: Mortgage default rates rose dramatically during the recent housing market downturn, increasing from less than 1% to historically high levels. Understanding the rise in mortgage default is critical for many market participants including borrowers, lenders, investors, regulators, and policymakers. We provide a comprehensive analysis of this topic by surveying nearly 100 empirical and theoretical studies related to mortgage default. Topics in the mortgage default literature are reviewed, including (1) the determinants of mortgage termination, (2) the relative termination experience of FRMs and ARMs, (3) screening and signaling equilibriums, and (4) loan loss severity and severity rates. The implications of each topic are discussed for each group of market participants.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2015.12090403 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjelxx:v:23:y:2015:i:2:p:167-205

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjel20

DOI: 10.1080/10835547.2015.12090403

Access Statistics for this article

Journal of Real Estate Literature is currently edited by Sophia Dermisi and Kimberly Winson

More articles in Journal of Real Estate Literature from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().