Refinance and Mortgage Default : A Regression Discontinuity Analysis of Harp's Impact on Default Rates

This paper examines the impact of refinancing on mortgage defaults based on an empirical investigation of the Home Affordable Refinance Program (HARP). We study a unique dataset from Freddie Mac which includes loans funded right before and after the HARP eligibility cutoff date, an exogenous event. Using a Fuzzy Regression Discontinuity Design method, we show that receiving a HARP refinance materially decreases the expected monthly default rate by about 48-62 percent using different bandwidth specifications

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Year of publication:	2018
Authors:	Karamon, Kadiri
Other Persons:	McManus, Douglas A. (contributor) ; Zhu, Jun (contributor)
Publisher:	[2018]: [S.l.] : SSRN
Subject:	Hypothek \| Mortgage \| Insolvenz \| Insolvency \| Kreditrisiko \| Credit risk \| Regressionsanalyse \| Regression analysis \| Kreditwürdigkeit \| Credit rating
Description of contents:	Abstract [papers.ssrn.com]