as higher credit scores, but may also have weaker incentives to maintain mortgage payments when housing values fall …. During the recent housing boom, the share of mortgage borrowing by non-occupant owners was relatively high in states where … Midwestern and Northeastern states reflected primarily a high rate of foreclosure per mortgage, not a high volume of mortgages to …

mortgage design interact with monetary policy? We answer these questions using a quantitative equilibrium life cycle model with … policy. Designs that raise mortgage payments in booms and lower them in recessions do better than designs with fixed mortgage … reductions over the life of the mortgage. Front-loading alleviates household liquidity constraints in states where they are most …