|Fields of interest:
Household Finance, Behavioural Economics & Finance, Financial Distress, Banking and Real Estate
Suite 3220 Evans Hall, P.O. Box 208200, New Haven CT 06520-8200
sean.hundtofte 'at' yale.edu
Feel free to contact me for the latest draft of any of these papers. I will post either the latest, or the latest conference-presented, versions shortly (June 2015).
- No Such Thing as a Free Option? Loan Modifications and Mortgage Borrower Outcomes
- Analysis of the effects of offering debt relief to delinquent mortgage borrowers.
- Non-strategic Mortgage Borrower Behaviour: Sending Letters Can Improve Outcomes
- I use a field experiment to explore the role of non-strategic factors in the
exercise of two key options available to a mortgage borrower: default and prepayment.
Simple low-cost treatments increase prepayments in the short-run and decrease contractual delinquency in the long-run. I propose a Prospective Memory-based explanation of both facts. I find
the gradual decrease in defaults cannot be explained
by option-exercise or dual trigger models of default, and the temporary increase in prepayments cannot be explained by popular models of “rational inattention”.