Do Restrictions on Home Equity Extraction Contribute to Lower Mortgage Defaults? Evidence from a Policy Discontinuity at the Texass Border

2014 ◽  
Author(s):  
Anil Kumar
Keyword(s):  
Home Equity ◽  
Mortgage Defaults

scholarly journals Do Restrictions on Home Equity Extraction Contribute to Lower Mortgage Defaults? Evidence from a Policy Discontinuity at the Texas Border

2018 ◽  
Vol 10 (1) ◽  
pp. 268-297 ◽  
Author(s):  
Anil Kumar
Keyword(s):  
Regression Discontinuity ◽  
Mortgage Default ◽  
Regression Discontinuity Design ◽  
Design Framework ◽  
Home Equity ◽  
Percentage Points ◽  
Home Value ◽  
Texas Border ◽  
Mortgage Defaults

Texas is the only US state that limits home equity borrowing to 80 percent of home value. This paper exploits this policy discontinuity around Texas’ interstate borders and uses a multidimensional regression discontinuity design framework to find that limits on home equity borrowing in Texas lowered the likelihood of mortgage default by about 1.5 percentage points for all mortgages and 4–5 percentage points for non-prime mortgages. Estimated non-prime mortgage default hazards within 25 to 100 miles on either side of the Texas border are about 20 percent smaller when crossing into Texas. (JEL G21, G28, R31)

Home Equity in Retirement

2011 ◽  
Author(s):  
Makoto Nakajima ◽  
Irina Telyukova
Keyword(s):  
Home Equity

Home Equity Lines of Credit and the Unemployment Rate – What Does the Evidence Say?

2012 ◽  
Author(s):  
John Phillip Lajaunie ◽  
Norbert J. Michel ◽  
Shari Lawrence ◽  
Ronnie Fanguy
Keyword(s):  
Unemployment Rate ◽  
Home Equity ◽  
Lines Of Credit

Hedging Home Equity Risk: Examination of a Nobel Idea

2020 ◽  
Author(s):  
Dag Einar Sommervoll ◽  
Steve M. Swidler
Keyword(s):  
Home Equity ◽  
Equity Risk
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