Doviak, Eric and MacDonald, Sean (2011): Who enters the foreclosure process?
This is the latest version of this item.
Download (382kB) | Preview
Since February 2010, detailed information on every home mortgage default and foreclosure in New York State must be filed with the New York State Banking Department (NYSBD). Our analysis of the NYSBD data suggests that borrowers in default who took larger loans are more likely to progress to a foreclosure filing. It also suggests that reducing principal balances may reduce the foreclosure rate, but might have an adverse effect on the mortgage industry.
Given the frequent criticism of the Home Affordable Modification Program (HAMP), it is no surprise that defaulted borrowers whose mortgages were modified via HAMP progress to a lis pendens filing a higher rate than defaulted borrowers without a modification or with a non-HAMP modification. After controlling for delinquency length (and other factors) however, we find that the HAMP program may have been effective in helping defaulted borrowers avoid foreclosure.
|Item Type:||MPRA Paper|
|Original Title:||Who enters the foreclosure process?|
|Keywords:||mortgage; default; foreclosure|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Personal Finance
|Depositing User:||Eric Doviak|
|Date Deposited:||12. Dec 2011 19:38|
|Last Modified:||13. Feb 2013 22:47|
S. Carroll and W. Li. “The Homeownership Experience of Households in Bankruptcy.” Cityscape: A Journal of Policy Development and Research. 2011. vol. 13, no. 1, p. 113-34.
CoreLogic. “US Housing and Mortgage Trends”, May 2011. http://www.corelogic.com/about-us/researchtrends/asset_upload_file722_8290.pdf.
E. Doviak and S. MacDonald. “Who Defaults on their Home Mortgage?” 24 Sept. 2011.
Federal Housing Finance Agency. "House Price Index" 24 Aug. 2011. http://www.fhfa.gov/Default.aspx?Page=14
B. Naylor. “Homeowners Rescue Program Shows Slim Benefits”. National Public Radio, 3 Feb. 2009. http://www.npr.org/templates/story/story.php?storyId=100163398.
New York State Banking Department. “2009 Mortgage Foreclosure Law - Overview”, 2009. http://www.banking.state.ny.us/mfl2009.htm.
R. Quercia and L. Ding. “Loan Modifications and Redefault Risk: An Examination of Short-Term Impacts” Cityscape: A Journal of Policy Development and Research. 2009. vol. 11, no. 3, p. 171-93.
RealtyTrac. “Foreclosure Activity Continues Free-Fall in May”. RealtyTrac press release, 16 June 2011. http://www.realtytrac.com/content/news-and-opinion/foreclosure-activity-continues-free-fall-in-may-6651.
State Foreclosure Prevention Working Group. “Analysis of Mortgage Servicing Performance,” Data Report Number 4, January, 2010. http://www.dfs.ny.gov/reportpub/amsp1001.pdf
State Foreclosure Prevention Working Group. “Redefault Rates Improve for Recent Loan Modifications”. Memorandum on Loan Modification Performance, Aug. 2010. http://www.dfs.ny.gov/reportpub/pr100824.pdf.
U.S. Dept. of the Treasury. “Final Notice of Proposed New Privacy Act System of Records for the Home Affordable Modification Program”. Federal Register, 74(207):55621–55623, 28 Oct. 2009. http://edocket.access.gpo.gov/2009/pdf/E9-25897.pdf.
U.S. Dept. of the Treasury. “Making Home Affordable Program Performance Report Through June 2011”, 5 Aug. 2011. http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/Documents/June%202011%20MHA%20Report%20FINAL.pdf
U.S. Office of the Comptroller of the Currency. “FHA HOPE for Homeowners Program”. Community Developments, Apr. 2010. http://www.occ.gov/static/community-affairs/fact-sheets/FHA_HOPE_for_Homeowners_Program_FS.pdf.
Available Versions of this Item
Who enters the foreclosure process? (deposited 24. Oct 2011 13:19)
- Who enters the foreclosure process? (deposited 12. Dec 2011 19:38) [Currently Displayed]