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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: | Routledge 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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|---|---|---|---|---|
| FullText.pdf | Copyright © 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent. | 1.52 MB | Adobe PDF | View/Open |
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