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Deficiency Judgments as a Mortgage Pricing Factor

Author

Listed:
  • Pruszkowski Tomasz

    (Department of Capital Markets, Warsaw School of Economics, Warszawa, Poland)

Abstract

The subject of the deficiency judgments has been poorly examined due to a lack of relevant data and the complexity of the issue. Some comprehensive studies have explored whether allowing deficiency judgments decreases the likelihood of strategic defaults in the U. S. mortgage market. Little, however, has been done to determine whether there is any direct correlation between legal standing allowing recourse and loan pricing. Hence, additional work regarding this subject is needed.

Suggested Citation

  • Pruszkowski Tomasz, 2017. "Deficiency Judgments as a Mortgage Pricing Factor," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(2), pages 57-68, June.
    • Handle: RePEc:vrs:ijomae:v:53:y:2017:i:2:p:57-68:n:5
    DOI: 10.1515/ijme-2017-0012
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    References listed on IDEAS

    as
    1. Riddiough, Timothy J & Wyatt, Steve B, 1994. "Wimp or Tough Guy: Sequential Default Risk and Signaling with Mortgages," The Journal of Real Estate Finance and Economics, Springer, vol. 9(3), pages 299-321, November.
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    3. Clauretie, Terrence M & Herzog, Thomas N, 1990. "The Effect of State Foreclosure Laws on Loan Losses: Evidence from the Mortgage Insurance Industry," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 22(2), pages 221-233, May.
    4. repec:hal:spmain:info:hdl:2441/4udtt6bh25946auar877ii1c1e is not listed on IDEAS
    5. Li, Wenli & Oswald, Florian, 2017. "Recourse and residential mortgages: The case of Nevada," Journal of Urban Economics, Elsevier, vol. 101(C), pages 1-13.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2013. "The Determinants of Attitudes toward Strategic Default on Mortgages," Journal of Finance, American Finance Association, vol. 68(4), pages 1473-1515, August.
    7. Jones, Lawrence D, 1993. "Deficiency Judgments and the Exercise of the Default Option in Home Mortgage Loans," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 115-138, April.
    8. Andra C. Ghent & Marianna Kudlyak, 2011. "Recourse and Residential Mortgage Default: Evidence from US States 1," The Review of Financial Studies, Society for Financial Studies, vol. 24(9), pages 3139-3186.
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    11. Wenli Li & Florian Oswald, 2014. "Recourse and the Residential Mortgage Market: the Case of Nevada," Working Papers hal-03460402, HAL.
    12. Lambrecht, Bart M & Perraudin, William R M & Satchell, Steven, 2003. "Mortgage Default and Possession under Recourse: A Competing Hazards Approach," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(3), pages 425-442, June.
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    Cited by:

    1. Sá, Ana Isabel, 2020. "To change or not to change: the impact of the law on mortgage origination," MPRA Paper 104818, University Library of Munich, Germany.

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    More about this item

    Keywords

    deficiency judgment; recourse and non-recourse mortgages; mortgage pricing policies;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K25 - Law and Economics - - Regulation and Business Law - - - Real Estate Law
    • K35 - Law and Economics - - Other Substantive Areas of Law - - - Personal Bankruptcy Law

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