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Charles Freeman's
Scholarly Papers
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Aggregate Statistics |
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Downloads
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Total
Citations
23 |
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1.
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Andrew Caplin
Leonard N. Stern School of Business - Department of Economics Charles Freeman
Leonard N. Stern School of Business - Department of Economics Joseph S. Tracy
Federal Reserve Bank of New York
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29 Dec 06
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Last Revised:
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02 Jan 07
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16
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23
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Abstract:
In the current structure of the U.S. residential mortgage market, a fall in property values may make it very difficult for homeowners to refinance their mortgages to take advantage of falling interest rates. In this paper, we explain the institutional background for this effect and quantify its importance. We confirm that this form of collateral constraint has greatly reduced recent refinancing in states with depressed property markets. We also point to the many ways in which the reduction in refinancing may have inflicted additional damage in these already recession-hit states. Finally, we show that relatively minor institutional changes could have neutralized the damaging effects of the collateral constraints, and we discuss why the institutions have their current structure.
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2.
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Andrew Caplin
Leonard N. Stern School of Business - Department of Economics Charles Freeman
Leonard N. Stern School of Business - Department of Economics Joseph S. Tracy
Federal Reserve Bank of New York
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18 Jul 97
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Last Revised:
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30 Oct 97
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Abstract:
In the current structure of the U.S. residential mortgage market, a decrease in property values may make it very difficult for homeowners to refinance their mortgages to take advantage of declining interest rates. In this paper, we show that this form of collateral constraint has greatly reduced refinancing in states with depressed property markets. We outline the interaction between regional recessions and refinancing constraints.
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