TY  - RPRT
        AU  - Diaz-Serrano, Luis
        TI  - Income Volatility and Residential Mortgage Delinquency: Evidence from 12 EU Countries
        PY  - 2004/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1396
        UR  - https://www.iza.org/index.php/publications/dp1396
        AB  - We investigate the socio-economic determinants of mortgage delinquency in 12 EU countries
and observe that income volatility significantly increases the mortgage delinquency risk. This
pattern even holds for borrowers with higher-income profiles if 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 imperfections, and; iii) the inability for a number of borrowers most at income
risk to accumulate precautionary savings in order to meet mortgage payments when shocks
in income arise.
        KW  - homeownership
KW  - credit market imperfections
KW  - mortgage insurance
KW  - income volatility
KW  - precautionary savings
KW  - payment-to-income ratio
KW  - mortgage delinquency
        ER  -