New Study Reveals Surprising Factors Influencing Mortgage Defaults
The article explores why people default on their mortgages. It looks at factors like income, housing market conditions, economic status, borrower characteristics, and costs of default. By analyzing individual loan histories over twelve years, the researchers found that these factors can be more important than just how much equity someone has in their home. Some households with no equity don't default, while others with equity do. This information can help lenders better understand when people might default on their mortgages.