Evaluating Mortgage Renegotiation Strategies: A Data-Driven Framework for Investors

The author especially thanks Nancy Wallace, Elena Loutskina, Amir Kermani, Christopher Palmer, and David Sraer for their feedback on this paper. The author also thanks Jason Allen (discussant), Brent Ambrose, Carlos Avenancio-Leon, Joao Cocco (discussant), Andrew Mackinlay (discussant), Marco Di Maggio, William Fuchs, Brett Green, Nirupama Kulkarni, Gustavo Manso, Ben McCartney, Hoai-Luu Nguyen, Bill Wilhelm, and numerous seminar and conference participants for helpful discussions, and Joseph Snitzer for excellent research assistance. Finally, the author thanks the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley and the Center for Investors and Financial Markets at the University of Virginia for providing data and funding toward this paper. This paper was previously circulated under the title “The limited benefits of mortgage renegotiation.”