Policy Intervention in Debt Renegotiation
Evidence from the Home Affordable Modification Program
Bibliographic Data
| ID | 10179708 |
|---|---|
| Authors | Sumit Agarwal (0000-0002-8305-3786, National University of Singapore), Gene Amromin (Federal Reserve Bank of Chicago), Itzhak Ben‐David (0000-0001-9743-7441, National Bureau of Economic Research), Itzhak Ben-David, Souphala Chomsisengphet (Office of the Comptroller of the Currency), Tomasz Piskorski (National Bureau of Economic Research), Amit Seru (National Bureau of Economic Research) |
| Year | 2017 |
| Volume | 125 |
| Issue | 3 |
| Pages | 654-712 |
| Publication date | 2017-04-27 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/691701 |
| OpenAlex | W4292321532 |
| Language | EN |
| Citations received | 11 |
| References cited | 22 |
We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented a substantial number of foreclosures but reached just one-third of its targeted indebted households. This shortfall was in large part due to low renegotiation intensity of a few large intermediaries and was driven by intermediary-specific factors. Exploiting regional variation in the intensity of program implementation by intermediaries suggests that the program was associated with a lower rate of foreclosures, consumer debt delinquencies, house price declines, and an increase in durable spending
Business · Debt · Economics · Financial intermediary · Foreclosure · HAMP · Incentive · Intermediary · Intervention (counseling · Microeconomics · Monetary economics · Finance · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism
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| Unique citing works | 11 |
|---|---|
| Citations per year | 1,38 |
| Citation span | 2018 - 2026 (9) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 10 |