%0 Report
        %A Diaz-Serrano, Luis
        %T Income Volatility and Residential Mortgage Delinquency: Evidence from 12 EU Countries
        %D 2004
        %8 2004 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1396
        %U https://www.iza.org/publications/dp1396
        %X 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.
        %K homeownership
%K credit market imperfections
%K mortgage insurance
%K income volatility
%K precautionary savings
%K payment-to-income ratio
%K mortgage delinquency