Skip to main content
Article thumbnail
Location of Repository

Mortgagor behavior and prepayment models

By 1969- Mario Bonilla

Abstract

We measure the efficiency of mortgagors over time and the implications that this increased efficiency may have on prepayments. The problem was approached using two methodologies: a) econometric techniques to measure the refinancing incentive elasticity of prepayments and b) simulations based on a model of the refinancing incentive using system dynamics modeling. The results suggest that there is a structural change in the prepayment function used in the study over a period of 6 years. However, the results of the simulations model play down the effects that increased mortgagor efficiency may have on prepayments and reaffirms the effect of a sustained downward drift of the mortgage rate as the most important prepayment rates explanatory factor.by Mario Bonilla.Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2003.Includes bibliographical references (leaf 46)

Topics: Sloan School of Management.
Publisher: Massachusetts Institute of Technology
Year: 2003
OAI identifier: oai:dspace.mit.edu:1721.1/29736
Provided by: DSpace@MIT
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://hdl.handle.net/1721.1/2... (external link)
  • http://dspace.mit.edu/handle/1... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.