The Effect of State Foreclosure Laws on Loan Losses: Evidence from the Mortgage Insurance Industry

Clauretie, Terrence M.; Herzog, Thomas N.

doi:10.2307/1992309

Cited by 95 publications

(68 citation statements)

References 4 publications

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“…20 Clauretie and Herzog (1990) and Pence (2003) also report similar results. We also control for garnishment allowance in case of bankruptcy.…”

Section: Exemption Laws and Small Business Bankruptcy Decisionsupporting

confidence: 55%

Impact of State Exemption Laws on Small Business Bankruptcy Decision

Agarwal¹,

Chomsisengphet²,

Li³

et al. 2005

Southern Economic Journal

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To provide some insights to the current debate on consumer bankruptcy laws, this article empirically assesses the importance of state bankruptcy exemption levels on the likelihood of small business owners filing for bankruptcy. We accomplish this with the help of a unique panel data set of over 43,000 small business credit card holders over a two-year period from May 2000 -May 2002. We estimate a proportional hazard model of small business bankruptcy and show that for every $10,000 increase in a state's homestead exemptions, the risk of small business bankruptcy increases by 8 percent. Moreover, our results also indicate that small business owners will increase the likelihood of filing for bankruptcy by 4 percent with a $1000 change in personal property exemption levels.3

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“…20 Clauretie and Herzog (1990) and Pence (2003) also report similar results. We also control for garnishment allowance in case of bankruptcy.…”

Section: Exemption Laws and Small Business Bankruptcy Decisionsupporting

confidence: 55%

Impact of State Exemption Laws on Small Business Bankruptcy Decision

Agarwal¹,

Chomsisengphet²,

Li³

et al. 2005

Southern Economic Journal

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show abstract

“…The efficiency of foreclosure law can affect recovery value due to the increase in time necessary for recovery and the additional costs related to the judicial procedure (Clauretie and Herzog, 1990). The probability of no recovery of the lender's exposure can increase in countries characterized by inefficient civil courts and can create an incentive for out-of-court procedures and debt renegotiation.…”

Section: Accountingmentioning

confidence: 99%

Loss Given Default for residential real estate banks: Evidence from the Euro area

Giannotti¹,

Mattarocci²,

Scimone³

2017

24th Annual European Real Estate Society Conference

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“…15 State foreclosure laws are classified as either judicial or power-of-sale. The judicial law process is somewhat more bureaucratic and time consuming than the power-of-sale process (see Clauretie and Herzog (1990)) and Ciochetti (1997)). Of the 631 restructured and foreclosed loans, 183 were governed by judicial foreclosure law states and 448 by power-ofsale foreclosure law states.…”

Section: Comparison To Industry Datamentioning

confidence: 99%