Using a unique dataset of home equity credit contracts, we examine the benefits of joint liability lending. Our results … single borrowers. Our results indicate that the lower risk associated with joint liability is largely dependent upon the … similarity of risk characteristics (profiles) of the joint borrowers. Our results suggest that joint liability lending per say …

defaulters have both negative equity and enough liquid or illiquid assets to make one month's mortgage payment. This finding …

Much of the literature on the economics of mortgage markets has studied the FRM-ARM choice made by individual borrowers … of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research …'s (1986a) model, using it to characterize optimal contracts in the absence of mortgage termination, and then exploring how …