First Mortgages, Second Mortgages and Their Default

Posted: 4 Apr 2014

See all articles by James B. Kau

James B. Kau

University of Georgia - Department of Insurance, Legal Studies, Real Estate

Donald C. Keenan

University of Cergy-Pontoise; University of Georgia

Constantine Lyubimov

Federal National Mortgage Association (Fannie Mae)

Multiple version iconThere are 2 versions of this paper

Date Written: April 2, 2014

Abstract

Using 35,437 pairs of first and second mortgages matched from within a much larger set of subprime mortgages, this paper tracks and describes the tendency for either one of the mortgages to enter default, as well as the tendency for either the one or the other mortgage to ever return to being current, all this in a possibly repeated manner. Thus, the entire, interconnected default history of pairs of first and second mortgages is explored, as well as compared to theoretical predictions.

Keywords: Piggyback mortgages; Default; Loan modifications

Suggested Citation

Kau, James B. and Keenan, Donald C. and Lyubimov, Constantine, First Mortgages, Second Mortgages and Their Default (April 2, 2014). Journal of Real Estate Finance and Economics, Vol. 48, No. 4, 2014, Available at SSRN: https://ssrn.com/abstract=2419612

James B. Kau

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6254
United States
706-542-9110 (Phone)
706-542-4295 (Fax)

Donald C. Keenan

University of Cergy-Pontoise ( email )

33 Boulevard du Port
Cergy-Pontoise Cedex, Cedex 95011
France

University of Georgia ( email )

510 Brooks Hall
Athens, GA 30602
United States
706-542-3668 (Phone)

Constantine Lyubimov (Contact Author)

Federal National Mortgage Association (Fannie Mae) ( email )

3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
United States

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