| Description |
1 online resource (37 pages) : color illustrations |
| Series |
IMF working paper ; WP/14/226 |
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IMF working paper ; WP/14/226.
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| Contents |
Cover; Contents; I. Introduction; Figures; 1. Household Debt Overhang; II. Comparing Recent Crises; 2. Economic and Housing Cycles; 3. Mortgage Debt and Home Ownership at Cycle Peak; 4. House Prices, Negative Equity, and Financial Distress at Cycle Trough; Tables; 1. Crisis Origin, Initial Conditions, Resolution Approach, Policy Measures, and Outcomes in Iceland, Ireland, Spain, and the US; A. Foreclosure; 5. Foreclosures; Boxes; 1. Codes for Borrower Protections in Ireland and Spain; B. Forbearance; 2. The Personal Insolvency Reforms in Ireland; 6. Actual and Projected Mortgage Arrears |
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C. Loan Modification7. Loan Modifications; III. Time to Modify? Trade-offs and Policies; 8. Resolution Targets and Outturns; A. Considering the Effects of Foreclosure; B. Providing Breathing Space with Temporary Forbearance; C. Maximizing Recovery Through Modification; 2. Examples of Innovative Modification Options; D. Reducing Distress Through Across-the-board Debt Relief; IV. Conclusion; Annex; I. Estimating Mortgage Arrears Using Macroeconomic Indicators; References |
| Summary |
In housing crises, high mortgage debt can feed a vicious circle of falling housing prices and declining consumption and incomes, leading to higher mortgage defaults and deeper recessions. In such situations, resolution policies may need to be adapted to help contain negative feedback loops while minimizing overall loan losses and moral hazard. Drawing on recent experiences from Iceland, Ireland, Spain, and the United States, this paper discusses how economic trade-offs affecting mortgage resolution differ in crises. Depending on country circumstances, the economic benefits of temporary forbearance and loan modifications for struggling households could outweigh their costs.--Abstract |
| Notes |
"December 2014." |
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"European Department." |
| Bibliography |
Includes bibliographical references (pages 35-37) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed December 18, 2014) |
| Subject |
Financial crises
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Mortgage loans -- Iceland
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Debt -- Iceland
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Foreclosure -- Iceland
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Debt relief -- Iceland
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Mortgage loans -- Ireland
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Debt -- Ireland
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Foreclosure -- Ireland
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Debt relief -- Ireland
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Mortgage loans -- Spain
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Debt -- Spain
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Foreclosure -- Spain
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Debt relief -- Spain
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Mortgage loans -- United States
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Debt -- United States
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Foreclosure -- United States
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Debt relief -- United States
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Debt
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Debt relief
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Economic history
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Economic policy
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Financial crises
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Foreclosure
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Mortgage loans
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| SUBJECT |
Iceland -- Economic policy
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Ireland -- Economic policy
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Spain -- Economic conditions.
http://id.loc.gov/authorities/subjects/sh85126049
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United States -- Economic conditions.
http://id.loc.gov/authorities/subjects/sh85140020
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| Subject |
Iceland
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Ireland
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Spain
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United States
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| Form |
Electronic book
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| Author |
International Monetary Fund. European Department, issuing body.
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