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 …

Tracking a sample of modified loans underlying private-label mortgage-backed securities, I compare the modification … soft information in mortgage securitization can impose a substantial cost on mortgage servicing, which raises important …