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In this paper I describe a methodology for pricing a set of contingent claims on the value of residential real estate. At least two such contracts are currently offered on owner-occupied single family homes and others have been proposed. I describe how to price these particular contracts, which...
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Home appraisals are produced for millions of residential mortgage transactions each year, but appraised values are … institutional framework that governs mortgage lending lead to information loss in appraisals (that is, appraisals set equal to the … incidence of mortgage default at loan-to-value boundaries (notches) above which mortgage insurance rates increase. Appraisals …
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