What question did this study set out to answer?

To identify the factors that lead to default on insured conventional residential mortgage loans.

The Determinants of Default on Insured Conventional Residential Mortgage Loans

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Empirical evidence reveals that various financial ratios and unemployment influence mortgage loan defaults.

To identify the factors that lead to default on insured conventional residential mortgage loans.
Estimated a multinomial logit model
Analyzed cross-sectional and time series data
Focused on regional aggregates
Contemporaneous payment/income and loan/value ratios significantly affect defaults
Unemployment rates also show a strong independent correlation
Age and original loan/value ratio remain commonly studied determinants

Campbell et al. (1983) studied this question.

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