Income Volatility and Residential Mortgage Delinquency: Evidence from 12EU Countries.
We Investigate the socio-economic determinants of mortgage delinquency in 12EU countries and observe that income volatility in income is high enough. From this result we can draw the following conclusions:i) mortgage protection insurance policies might be failing to cover those borrowers most in need; ii) the existence of credit market imperfection, and;iii) the inability for a number of borrowers most at income risk to accumulate precautionary savings in order to meet morgage payments when stocks in imcome rise.
||Department of Economic Working Paper Series N153/02/05
||Income volatility, mortgage delinquency, mortgage insurance, homeownership, payment-to-income ratio, credit market imperfections, precautionary savings.
||Faculty of Social Sciences > Economics, Finance and Accounting
Ms Sandra Doherty
||15 Mar 2005
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