This paper examines the potential market impacts of continuous forbearance mortgages (CFM). This mortgage design embeds an insurance contract at origination that reduces the interest bearing balance to the smaller of the unpaid balance and an estimate of the current home value in exchange for an...

Theory and evidence are presented on how governance structure affects security design. Two types of frictions are isolated as they affect agent incentives to resolve financial distress: moral hazard in costly effort provision and risk-shifting incentives. A tension is shown to exist between the...

Two- to four-family properties make up 19% of all rental housing but receive almost no attention. Using a unique dataset from Freddie Mac and Fannie Mae, we show that, for any given set of loan characteristics and compared with one-unit properties, two- to four-unit properties are more likely to...

This paper shows that, in certain high dimensional integration problems, quasi-Monte Carlo using Sobol sequences can never be more efficient than the ordinary Monte Carlo no matter how carefully the primitive polynomials and initialization numbers are chosen