Income Volatility and Residential Mortgage Delinquency: Evidence from 12EU Countries
Diaz-Serrano, Luis (2005) Income Volatility and Residential Mortgage Delinquency: Evidence from 12EU Countries. . AbstractWe Investigate the socio-economic determinants of mortgage delinquency in 12EU countries and observe that income volatility in income is high enough. From this result we can draw the following conclusions:i) mortgage protection insurance policies might be failing to cover those borrowers most in need; ii) the existence of credit market imperfection, and;iii) the inability for a number of borrowers most at income risk to accumulate precautionary savings in order to meet morgage payments when stocks in imcome rise. | Additional Information: | Department of Economic Working Paper Series N153/02/05 |
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| Keywords: | Income volatility, mortgage delinquency, mortgage insurance, homeownership, payment-to-income ratio, credit market imperfections, precautionary savings. |
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| Subjects: | Social Sciences > Economics |
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| ID Code: | 210 |
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| Deposited By: | Ms Sandra Doherty |
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| Deposited On: | 15 Mar 2005 |
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| Refereed: | No |
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