Replication data for: Payment Size, Negative Equity, and Mortgage Default

Principal Investigator(s): View help for Principal Investigator(s) Andreas Fuster; Paul S. Willen

Name	File Type	Size	Last Modified
POL2015-0007_data			12/07/2019 04:16:PM
LICENSE.txt	text/plain	14.6 KB	12/07/2019 11:16:AM

Project Citation:

Fuster, Andreas, and Willen, Paul S. Replication data for: Payment Size, Negative Equity, and Mortgage Default. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116511V1

Project Description

Summary: This paper studies the treatment effect of monthly payment size on mortgage default, using a sample of adjustable-rate loans that experienced large payment reductions thanks to the recent low interest rate environment. Payment size has an economically large effect on repayment behavior; for instance, cutting the required payment in half reduces the delinquency hazard by about 55 percent. Importantly, the link between payment size and delinquency is equally strong for borrowers that are significantly underwater on their mortgage. Relying on payment reductions for identification circumvents the selection concerns due to prepayments that would be associated with rate increases.

Scope of Project

JEL Classification:
      D14 Household Saving; Personal Finance
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      R31 Housing Supply and Markets

Related Publications

Download this project

Published Versions

V1 [2019-12-07]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.