Spillover effects of continuous forbearance mortgages
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- 作者：Kadiri Karamon1 ; kadiri_karamon@freddiemac.com" class="auth_mail" title="E-mail the corresponding author ; Douglas McManus1 ; douglas_mcmanus@freddiemac.com" class="auth_mail" title="E-mail the corresponding author ; Elias Yannopoulos1 ; elias_yannopoulos@freddiemac.com" class="auth_mail" title="E-mail the corresponding author
- 关键词：Mortgage modification ; Financial crisis ; Economic stimulus
- 刊名：Journal of Economics and Business
- 出版年：2016
- 出版时间：March-April 2016
- 年：2016
- 卷：84
- 期：Complete
- 页码：95-108
- 全文大小：522 K
文摘
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Continuous Forbearance Mortgages (CFM) reduce payments when there is negative equity.
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The CFM reduces interest payments when the home value falls below the mortgage balance.
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The CFM would have provided a $225 billion boost to aggregate demand in the recent crisis.
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The CFM would have reduced default for underwater loans by 11% during the recent crisis.
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Benefits of the CFM are concentrated in areas with the largest house price declines.