Federal Reserve Bank of Cleveland: 'Is There a Puzzle in Underwater Mortgage Default?'
September 29, 2025
September 29, 2025
CLEVELAND, Ohio, Sept. 29 (TNSLrpt) -- The Federal Reserve Bank of Cleveland issued the following white paper (No. 25-22) on September 25, 2025, by LAra Loewenstein, Paul Willen, Yuxi Yao, and David Zhang entitled "Is There a Puzzle in Underwater Mortgage Default?"
Here are excerpts:
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A recurring question in the mortgage default literature is why underwater default is rare relative to model predictions. We find that one answer is miscalibrati . . .
Here are excerpts:
* * *
A recurring question in the mortgage default literature is why underwater default is rare relative to model predictions. We find that one answer is miscalibrati . . .