Title: Non-Recourse Mortgage and Housing Price Bubble, Burst and Recovery
Abstract:This paper investigates the impact of the non-recourse vs. recourse mortgage on the housing price dynamics in American major metropolitan areas (MSAs). We find strong evidence that non-recourse states...This paper investigates the impact of the non-recourse vs. recourse mortgage on the housing price dynamics in American major metropolitan areas (MSAs). We find strong evidence that non-recourse states experience faster price growth during the boom (2000 to 2006) as well as sharper price drop during the bust period (2006-2009). The result lends limited support to the notion that non-recourse states also experience faster price recovery in the rebound periods after the crisis (2009-2013). The volatility of housing price is larger in the non-recourse states than the recourse ones, in particular during the rebound period.Read More
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 1
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot