95% Mortgages

Using the model estimates, we simulate demand under four different mortgage availability regimes: FRM, FRM and GFRM, FRM and ARM, and all three. These simulations indicate that GFRMs, by relaxing LTV constraints, increase housing demand by approximately 6.2percent relative to the FRM regime; the addition of ARMs, by relaxing both PTI and LTV constraints, raises demand by an additional 6percent, for a total of 12.2percent with inclusion of all alternatives. 95% mortgages are offeredd even to people with bad credit history. All you would need to do is a bit of research.

This study tests for the presence of prejudicial or “noneconomic” discrimination on the part of mortgage lenders by evaluating the performance of home mortgage loans and mortgages with no credit check. The approach differs from that of previous studies of loan performance in that it is based on the proposition that noneconomic discrimination should be more pronounced in less competitive lending environments, while statistical discrimination should not. In states with laws favoring the borrower, the supply of mortgage credit may decrease because lenders face higher costs. To examine the laws' effects, I compare approved mortgage applications in census tracts that border each other but are located in different states.

In this paper, we avoid this problem by studying the market for mortgage backed securities (MBS), a market which exhibits significant asymmetric information on an ex ante basis, but ex post reveals individual security qualities. As shown in DeMarzo and Duffie (1999), these security structures are optimal when the market values of the underlying assets are sensitive to private information held by the issuer of the securities. This paper investigates the relationship between bankruptcy exemptions and the availability of credit for mortgage and home improvement loans.

We develop a combined model of debtors' decisions to file for bankruptcy and to default on their mortgages and show that the theory predicts positive relationships between both the homestead and personal property exemption levels and the probability of borrowers being denied mortgage and unsecured loans.

This paper asks how a household should choose between a fixed-rate (FRM) and an adjustable-rate (ARM) mortgage. In an environment with uncertain inflation a nominal FRM has a risky real capital value, whereas an ARM has a stable real capital value but short-term variability in required real payments.