This paper explores the implications of a housing market bubble for three critical elements of mortgage contract design … reduction benefits of shorter term to contract maturity at origination for lenders of long amortization mortgage contracts. In … addition, the risks of underpricing prepayment and no recourse default options in the mortgage contract when compared with full …

almost half of purchase mortgage originations were associated with investors. In part by apparently misreporting their …

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 … concentrate them in recessions outperform designs that spread payment reductions over the life of the mortgage. Front …