The Impact of Repossession Risk on Mortgage Default
研究爱尔兰一项禁止收回违约住房抵押品的法律裁决如何影响借款人违约行为，发现违约率每季度上升0.3个百分点，高贷款价值比和低流动性加剧这一效应。
ABSTRACT I study the effect of removing repossession risk on a mortgagor's decision to default. Reducing default costs may result in strategic default, particularly during crises when homeowners can be substantially underwater. I analyze difference‐in‐differences variation in repossession risk generated by an unexpected legal ruling in Ireland that prohibited collateral enforcement on delinquent residential mortgages originated before a particular date. I estimate that borrowers defaulted by 0.3 percentage points more each quarter after the ruling, a relative increase of approximately one‐half. High loan‐to‐value ratios and low liquidity are associated with a larger treatment effect, suggesting both equity and consumption‐based motivations.