Optimal Stopping and Losses on Subprime Mortgages
dc.contributor.author | Capozza, Dennis R. | en_US |
dc.contributor.author | Thomson, Thomas A. | en_US |
dc.date.accessioned | 2006-09-11T19:22:38Z | |
dc.date.available | 2006-09-11T19:22:38Z | |
dc.date.issued | 2005-03 | en_US |
dc.identifier.citation | Capozza, Dennis R.; Thomson, Thomas A.; (2005). "Optimal Stopping and Losses on Subprime Mortgages." The Journal of Real Estate Finance and Economics 30(2): 115-131. <http://hdl.handle.net/2027.42/47774> | en_US |
dc.identifier.issn | 0895-5638 | en_US |
dc.identifier.issn | 1573-045X | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/47774 | |
dc.description.abstract | Lender losses on mortgage loans arise from a two-stage process. In the first stage, the borrower stops making payments if and when default is optimal. The second stage is a lengthy and costly period during which the lender employs legal remedies to obtain possession and execute a sale of the collateral. This research uses data on subprime mortgage losses to explore the role of borrower and collateral characteristics, and local legal requirements, as well as traditional option variables in the decisions of borrowers and lenders. Although subprime borrowers default earlier, which should reduce lender losses, these borrowers, nevertheless, impose greater realized losses on mortgage lenders. | en_US |
dc.format.extent | 195796 bytes | |
dc.format.extent | 3115 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.language.iso | en_US | |
dc.publisher | Kluwer Academic Publishers; Springer Science + Business Media, Inc. | en_US |
dc.subject.other | Economics / Management Science | en_US |
dc.subject.other | Regional Science | en_US |
dc.subject.other | Finance /Banking | en_US |
dc.subject.other | Subprime | en_US |
dc.subject.other | Mortgages | en_US |
dc.subject.other | Defaults | en_US |
dc.subject.other | Losses | en_US |
dc.subject.other | Lending | en_US |
dc.title | Optimal Stopping and Losses on Subprime Mortgages | en_US |
dc.type | Article | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.description.peerreviewed | Peer Reviewed | en_US |
dc.contributor.affiliationum | University of Michigan Business School, Ann Arbor, MI, 48109-1234, USA | en_US |
dc.contributor.affiliationother | University of Texas, San Antonio, TX, 78249-0633, USA | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/47774/1/11146_2004_Article_4875.pdf | en_US |
dc.identifier.doi | http://dx.doi.org/10.1007/s11146-004-4875-z | en_US |
dc.identifier.source | The Journal of Real Estate Finance and Economics | en_US |
dc.owningcollname | Interdisciplinary and Peer-Reviewed |
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