Beltratti, Andrea E; Benetton, Matteo; Gavazza, Alessandro - C.E.P.R. Discussion Papers - 2015
reform in Italy that reduced penalties on outstanding mortgages and banned penalties on newly-issued mortgages. Using a … unique dataset of mortgages issued by a large Italian lender before and after the reform, we provide evidence that: 1) before … the reform, mortgages issued to riskier borrowers included larger penalties; 2) higher prepayment penalties decreased …