Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/32108
Title: House price dynamics and mortgage defaults: the role of recourse
Authors: Damianov, DS
Wang, X
Yan, C
Keywords: mortgage default;strategic default;recourse;house price dynamics
Issue Date: 23-Sep-2025
Publisher: Roultedge on behalf of the Regional Studies Association
Citation: Damianov, D.S., Wang, X. and Yan, C. (2025) 'House price dynamics and mortgage defaults: the role of recourse', Regional Studies, 59 (1), 2549592, pp. 1 - 15. doi: 10.1080/00343404.2025.2549592.
Abstract: This paper investigates the relationship between house prices and mortgage defaults in recourse and non-recourse US metropolitan areas. The theoretical analysis shows that shocks to house price returns have a stronger effect on defaults in non-recourse markets than in recourse markets due to strategic default behaviour. Empirical evidence from a panel vector autoregressive (Panel VAR) model supports this prediction and, in addition, reveals a stronger house price response to defaults in non-recourse markets than predicted by the theoretical model. The findings highlight key differences in mortgage default dynamics across recourse and non-recourse markets, offering insights for households, lenders, policymakers and regulators.
Description: Data Availability Statement: The data that support the findings of this study are available from a commercial data provider (CoreLogic, www.corelogic.com). Restrictions apply to the availability of these data, which were used under license for this study. Additional data used in this study were collected from resources available in the public domain. These data are available from the corresponding author upon request.
Supplemental Material: Supplemental data for this article can be accessed online at: https://ndownloader.figstatic.com/files/58152341 .
URI: https://bura.brunel.ac.uk/handle/2438/32108
DOI: https://doi.org/10.1080/00343404.2025.2549592
ISSN: 0034-3404
Other Identifiers: ORCiD: Damian S. Damianov https://orcid.org/0000-0002-6100-0018
ORCiD: Xiangdong Wang https://orcid.org/0009-0005-2004-7679
ORCiD: Cheng Yan https://orcid.org/0000-0002-3569-6859
Article number: 2549592
Appears in Collections:Dept of Economics and Finance Research Papers

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