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Collateral valuation and borrower financial constraints : evidence from the residential real estate market

Agarwal, Sumit; Ben-David, Itzhak; Yao, Wenxiong - In: Management science : journal of the Institute for … 61 (2015) 9, pp. 2220-2240

Persistent link: https://www.econbiz.de/10011372430

Do consumers choose the right credit contracts?

Agarwal, Sumit; Chomsisengphet, Souphala; Liu, Chunlin; … - 2005

A number of studies have pointed to various mistakes that consumers might make in their consumption-saving and financial decisions. We utilize a unique market experiment conducted by a large U.S. bank to assess how systematic and costly such mistakes are in practice. The bank offered consumers a...

Persistent link: https://www.econbiz.de/10010298314

Do loan officers' incentives lead to lax lending standards?

Agarwal, Sumit; Ben-David, Itzhak - 2012

We study a controlled experiment in which a bank's loan officers were incentivized based on originated loan volume to encourage prospecting for new business. While treated loan officers did attract new applications, both extensive and intensive margins of loan origination expanded ( 31% new...

Persistent link: https://www.econbiz.de/10009625941

Policy intervention in debt renegotiation : evidence from the home affordable modification program

Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; … - 2012

We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number of foreclosures but reached just one-third of its...

Persistent link: https://www.econbiz.de/10009697769

Second liens and the holdup problem in mortgage renegotiation

Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; … - 2014

When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...

Persistent link: https://www.econbiz.de/10010353293

Policy intervention in debt renegotiation : evidence from the Home Affordable Modification Program

Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; … - 2013

The main rationale for policy intervention in debt renegotiation is to enhance such activity when foreclosures are perceived to be inefficiently high. We examine the ability of the government to influence debt renegotiation by empirically evaluating the effects of the 2009 Home Affordable...

Persistent link: https://www.econbiz.de/10010212760

Banking Competition and Shrouded Attributes : Evidence from the US Mortgage Market

Agarwal, Sumit - 2020

We document that banking deregulation leads banks to offer lower initial rates on adjustable-rate mortgages to attract … borrowers, but banks also shroud these contracts by increasing back-loaded resetting rates. More shrouding can be explained by … higher proportion of naïve borrowers following the deregulation and banks shroud more where there are more naïve borrowers …

Persistent link: https://www.econbiz.de/10012854765

Effects of Government Bailouts on Mortgage Modification

Agarwal, Sumit - 2017

This paper shows, for the first time, how liquidity infusions from government bailouts affect loan modification in the mortgage market. The design of the Pooling and Service Agreement leads mortgage servicers to prefer foreclosure to modification when the servicers are liquidity constrained....

Persistent link: https://www.econbiz.de/10012972902

Policy Intervention in Debt Renegotiation : Evidence from the Home Affordable Modification Program

Agarwal, Sumit - 2016

Persistent link: https://www.econbiz.de/10013006903

The Impact of the 2001 Financial Crisis and the Economic Policy Responses on the Argentine Mortgage Market

Agarwal, Sumit - 2005

Following the 2001 financial crisis, the government of Argentina instituted economic policies to soften the adverse impact of the crisis on the economy. In this paper, we use loan-level data to empirically assess the impact of the currency devaluation and the economic response policies on...

Persistent link: https://www.econbiz.de/10012784515