Innovations in statistical technology in functions including credit‐screening have raised
concerns about distributional impacts across categories such as race. Theoretically …

This article reviews the surge in research on mortgage default inspired by the recent
foreclosure crisis. Economists already understood a great deal about default, both …

I investigate how the structure of the mortgage market influences macroeconomic dynamics,
using a general equilibrium framework with prepayable debt and a limit on the ratio of …

We examine the behavior of mortgage borrowers over several economic cycles using an
unprecedented dataset of origination and monthly performance records for over 120 million …

In this paper, we solve a dynamic model of households' mortgage decisions incorporating
labor income, house price, inflation, and interest rate risk. Using a zero‐profit condition for …

Unprecedented levels of US subprime mortgage defaults precipitated a severe global
financial crisis in late 2008, plunging much of the industrialized world into a deep recession …

The recent plunge in US home prices left many households that had borrowed voraciously
during the credit boom highly leveraged, with very high levels of debt relative to the value of …

Nearly two years after the official end of the" Great Recession," the labor market remains
historically weak. One candidate explanation is supply-side effects driven by dramatic …

We quantify the effect of recourse on default and find that recourse affects default by
lowering the borrower's sensitivity to negative equity. At the mean value of the default option …

By Ronel Elul, Nicholas S. Souleles, Souphala Chomsisengphet, Dennis Glennon, and
Robert Hunt* position. For someone who is very illiquid, it can be costly to wait for house …