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Replication data for: Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide

Version
V0
Resource Type
Dataset
Creator
  • Mayer, Christopher
  • Morrison, Edward
  • Piskorski, Tomasz
  • Gupta, Arpit
Publication Date
2014-09-01
Description
  • Abstract

    We investigate whether homeowners respond strategically to news of mortgage modification programs. We exploit plausibly exogenous variation in modification policy induced by settlement of U.S. state government lawsuits against Countrywide Financial Corporation, which agreed to offer modifications to seriously delinquent borrowers. Using a difference-in-difference framework, we find that Countrywide's monthly delinquency rate increased more than 0.54 percentage points—a ten percent relative increase—immediately after the settlement's announcement. The estimated increase in default rates is largest among borrowers least likely to default otherwise. These results suggest that strategic behavior should be an important consideration in designing mortgage modification programs. (JEL D10, G21, G33, K00)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.104.9.2830 (Text)
Publications
  • Mayer, Christopher, Edward Morrison, Tomasz Piskorski, and Arpit Gupta. “Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide.” American Economic Review 104, no. 9 (September 2014): 2830–57. https://doi.org/10.1257/aer.104.9.2830.
    • ID: 10.1257/aer.104.9.2830 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06

Mayer, Christopher; Morrison, Edward; Piskorski, Tomasz; Gupta, Arpit (2014): Replication data for: Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116130