Securitization and Mortgage Renegotiation: Evidence from the Great Depression
Review of Financial Studies
37 Pages Posted: 4 Feb 2011 Last revised: 24 Nov 2011
Date Written: January 14, 2011
Abstract
We use loan level data from the NYC metropolitan area to examine the extent to which lenders attempted to prevent foreclosures with concessionary modifications during the Great Depression. We find no principal forgiveness in the sample and only a handful of concessionary mortgage modifications of other types. Far more mortgages terminated through foreclosure than received any sort of concessionary modification. The results indicate that there are significant impediments to renegotiation of residential mortgages beyond securitization. As such, less renegotiation seems unlikely to be a major cost of securitization of residential mortgages.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Securitization and Distressed Loan Renegotiation: Evidence from the Subprime Mortgage Crisis
By Tomasz Piskorski, Amit Seru, ...
-
Why Don't Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures and Securitization
By Manuel Adelino, Kristopher Gerardi, ...
-
Recourse and Residential Mortgage Default: Evidence from U.S. States
By Andra C. Ghent and Marianna Kudlyak
-
Why Don't Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures, and Securitization
By Manuel Adelino, Kristopher Gerardi, ...
-
Moral and Social Constraints to Strategic Default on Mortgages
By Luigi Guiso, Paola Sapienza, ...
-
Moral and Social Constraints to Strategic Default on Mortgages
By Luigi Guiso, Paola Sapienza, ...
-
Reducing Foreclosures: No Easy Answers
By Christopher L. Foote, Kristopher Gerardi, ...
-
Reducing Foreclosures: No Easy Answers
By Christopher L. Foote, Kristopher Gerardi, ...
-
An Empirical Model of Subprime Mortgage Default from 2000 to 2007
By Patrick Bajari, Chenghuan Sean Chu, ...