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Complex Mortgages (CM)

Author : Gene Amromin

Publisher : DIANE Publishing

Page : 57 pages

File Size : 29,97 MB

Release : 2011

Category : Business & Economics

ISBN : 1437987850

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Book Description

CM became a popular borrowing instrument during the bullish housing market of the early 2000s but vanished rapidly during the subsequent downturn. These non-traditional loans (interest only, negative amortization, and teaser mortgages) enable households to postpone loan repayment compared to traditional mortgages and hence relax borrowing constraints. But, they increase household leverage and heighten dependence on mortgage refinancing. CM were chosen by prime borrowers with high income levels seeking to purchase expensive houses relative to their incomes. Borrowers with CM experience substantially higher ex post default rates than borrowers with traditional mortgages with similar characteristics. Illus. This is a print on demand report.



Complex Mortgages

Author : Gene Amromin

Publisher :

Page : 0 pages

File Size : 24,98 MB

Release : 2011

Category :

ISBN :

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Book Description

We investigate the characteristics and the default behavior of households who take out complex mortgages. Unlike traditional fixed rate or adjustable rate mortgages, complex mortgages are not fully amortizing and enable households to postpone loan repayment. We find that complex mortgages are used by sophisticated households with high income levels and prime credit scores, in contrast to the low income population targeted by subprime mortgages. Complex mortgage borrowers have significantly higher delinquency rates than traditional mortgage borrowers even after controlling for leverage, payment resets, and other household and loan characteristics. The difference in the delinquency rates between complex and traditional borrowers increases with measures of financial sophistication and leverage, suggesting that complex borrowers are more strategic in their default decisions than traditional borrowers.



Complex Mortgages

Author : Gene Amromin

Publisher :

Page : 48 pages

File Size : 19,10 MB

Release : 2018

Category :

ISBN :

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Book Description

Complex mortgages became a popular borrowing instrument during the bullish housing market of the early 2000s but vanished rapidly during the subsequent downturn. These non-traditional loans, including interest-only and negative-amortization loans, enable households to postpone loan repayment in contrast to fully-amortizing traditional mortgages. Contrary to common perception, complex mortgages are used by households with high income levels and prime credit scores, quite unlike the low-income population targeted by subprime mortgages. Nonetheless, we find that complex-mortgage borrowers become delinquent on their mortgages at rates twice as high as borrowers with plain-vanilla fixed-rate contracts even after controlling for household and loan characteristics. Our findings suggest a link between innovations in mortgage markets focused on prime borrowers and the financial crisis.



Introduction to Mortgages and Mortgage Backed Securities

Author : Richard K. Green

Publisher : Academic Press

Page : 249 pages

File Size : 21,79 MB

Release : 2013-11-21

Category : Business & Economics

ISBN : 0124045936

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Book Description

In Introduction to Mortgages & Mortgage Backed Securities, author Richard Green combines current practices in real estate capital markets with financial theory so readers can make intelligent business decisions. After a behavioral economics chapter on the nature of real estate decisions, he explores mortgage products, processes, derivatives, and international practices. By focusing on debt, his book presents a different view of the mortgage market than is commonly available, and his primer on fixed-income tools and concepts ensures that readers understand the rich content he covers. Including commercial and residential real estate, this book explains how the markets work, why they collapsed in 2008, and what countries are doing to protect themselves from future bubbles. Green's expertise illuminates both the fundamentals of mortgage analysis and the international paradigms of products, models, and regulatory environments. Written for buyers of real estate, not mortgage lenders Balances theory with increasingly complex practices of commercial and residential mortgage lending Emphasizes international practices, changes caused by the 2008-11 financial crisis, and the behavioral aspects of mortgage decision making



The Mortgage Encyclopedia

Author : Jack Guttentag

Publisher : McGraw Hill Professional

Page : 336 pages

File Size : 15,48 MB

Release : 2004-06-21

Category : Business & Economics

ISBN : 0071458492

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Book Description

A one-stop reference for in-depth explanations of mortgage topics With the creation of so many new, complex mortgage programs, it's difficult for consumers --not to mention real estate agents, attorneys, closing agents, and mortgage brokers--to keep track of them all. Written by nationally syndicated real estate columnist Jack Guttentag, The Mortgage Encyclopedia helps readers understand the various mortgage terms, features, and options by offering clear, precise explanations. The alphabetical organization of terms makes it easy to quickly find information on any topic, from FHA, Investor, and No-PMI Loans to Origination Fee and Rate Float. Each entry includes not just a description of the term, but also relevant advice for consumers, such as answers to the questions "Is this loan right for me?" and "Can I negotiate this fee?" Guides readers through the bewildering array of new mortgage programs Features definitions and explanations of common mortgage, escrow, and closing fees and arcane mortgage terminology



Mortgages and Refinancing : Get the Best Rates

Author : Jason R. Rich

Publisher : Entrepreneur Press

Page : 0 pages

File Size : 11,23 MB

Release : 2006-09-22

Category : Business & Economics

ISBN : 9781599180397

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Book Description

Save Thousands on Your Mortgage! What type of mortgage is best for you? How can you ensure a broker isn't scamming you? Are you getting the best rate? What happens if rates go up again? When dealing with the complex world of mortgages and refinancing, it's all too easy to commit to a deal that you realize too late is too good to be true. But with this must-read guide, you'll learn in as little as three hours the ins and outs of mortgages and how to protect yourself from bad deals and scams. Find out how to: Choose the best mortgage type for your financial situation Protect yourself from unscrupulous brokers and banks Get the best rates and save thousands of dollars over the life of your mortgage Discover the benefits of refinancing to lower your payments, consolidate your bills or make home improvements Whether you're a first-time homeowner or you're looking to refinance, don't sign a deal without this expert advice.



Mortgages 101

Author : David Reed

Publisher : Amacom

Page : 0 pages

File Size : 24,76 MB

Release : 2018

Category : Business & Economics

ISBN : 9780814438749

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Book Description

Everything you need to know before you borrow... Unless you're sitting on a pile of cash, chances are you'll need to take out a mortgage when you're ready to buy a home. But how do you know how much house you can afford? What should you look for in a loan? What kind of paperwork is needed . . . and how do you improve your odds of getting a great rate? Mortgages 101 eliminates the confusion and stress with clear-cut answers to all your questions. Updated to reflect the enormous changes in the mortgage market in recent years, Mortgages 101 is the all-in-one reference you've been looking for. Covering a wide range of topics-from negotiating the best deal to saving on closing costs-this revised third edition provides the latest information on: Application procedures * Online lenders * New loan and government programs * Qualifying requirements * Credit strategies * Down payment assistance and zero-down options * Guidelines for self-employed borrowers * Bankruptcies and waiting periods * Refinancing and home equity loans * Consumer Financial Protection Bureau rules * The Ability-to-Repay mandate * And much more This is THE book you need to read before you sign on the dotted line.





Residential Mortgage Lending

Author : Marshall W. Dennis

Publisher :

Page : 322 pages

File Size : 16,19 MB

Release : 1992

Category : Business & Economics

ISBN : 9780137554065

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Book Description



Understanding the Securitization of Subprime Mortgage Credit

Author : Adam B. Ashcraft

Publisher : DIANE Publishing

Page : 76 pages

File Size : 11,5 MB

Release : 2010-03

Category :

ISBN : 1437925146

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Book Description

Provides an overview of the subprime mortgage securitization process and the seven key informational frictions that arise. Discusses the ways that market participants work to minimize these frictions and speculate on how this process broke down. Continues with a complete picture of the subprime borrower and the subprime loan, discussing both predatory borrowing and predatory lending. Presents the key structural features of a typical subprime securitization, documents how rating agencies assign credit ratings to mortgage-backed securities, and outlines how these agencies monitor the performance of mortgage pools over time. The authors draw upon the example of a mortgage pool securitized by New Century Financial during 2006. Illustrations.