Determinants of the Strategic Mortgage Default Cumulative Distribution Function

24 Pages Posted: 12 Jul 2014

See all articles by Michael Seiler

Michael Seiler

College of William and Mary - Finance

Date Written: June 20, 2014

Abstract

This study discusses the many factors and considerations that enter into the strategic mortgage default (SMD) decision-making process. While it is not possible to construct a single cumulative distribution function (CDF) associated with this decision, it is important for policymakers to better understand what composes its shape as well as the range over which values occur. In this paper, I use both transactions-based and experiment-based data to suggest a theoretical shape of the SMD CDF.

Keywords: strategic mortgage default; morality; real estate law; cumulative distribution function

JEL Classification: K11, K12, K41, R20, R21

Suggested Citation

Seiler, Michael, Determinants of the Strategic Mortgage Default Cumulative Distribution Function (June 20, 2014). Available at SSRN: https://ssrn.com/abstract=2465059 or http://dx.doi.org/10.2139/ssrn.2465059

Michael Seiler (Contact Author)

College of William and Mary - Finance ( email )

VA
United States

HOME PAGE: http://mason.wm.edu/faculty/directory/seiler_m.php

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