00000nam 2200000zi 4500 9.937205 CaOODSP 20240419141954 m o d f cr |n||||||||| 240419t20242024oncd ob f|0| 0 eng d CaOODSP eng rda CaOODSP n-cn--- FB3-5/2024-11E-PDF Tian, Phoebe, author. Unintended consequences of the Home Affordable Refinance Program / by Phoebe Tian and Chen Zheng. [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 1 online resource (ii, 60 pages) : charts. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-11 "Last updated: April 11, 2024." Includes bibliographical references. "We study the unintended effects of the Home Affordable Refinance Program (HARP) on mortgage borrowers. Originally designed to help financially distressed borrowers refinance after the 2008–09 global financial crisis, HARP inadvertently amplified the market power of incumbent lenders by introducing a cost differential between incumbents and their competitors. To assess the welfare implications of this cost advantage, we develop and estimate a structural model of dynamic refinancing decisions with lenders’ offers arising from a search and negotiation process. Our findings reveal that although the cost asymmetry was rectified by a 2013 policy, it still resulted in a welfare loss exceeding the impact of search frictions"--Abstract, page ii. Mortgage loans Refinancing Canada. Prêts hypothécaires Refinancement Canada. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2024-11. (CaOODSP)9.806221 PDF 898 KB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-5-2024-11-eng.pdf