Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5101969 | Journal of Urban Economics | 2017 | 15 Pages |
Abstract
This paper provides evidence for a performance differential between loans with one borrower and loans with two borrowers. We argue that the choice of observables considered during the rate adjustment process may lead to mortgage mispricing for loans with co-borrowers. Our findings offer an example of borrower-level information that mortgage lenders collect, which is not used in pricing, but is predictive of performance.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Konstantinos Tzioumis,