A Heterogeneous Agent Model of Mortgage Servicing: An Income-based Relief Analysis

Understand

Mortgages account for the largest portion of household debt in the United States, totaling around \$12 trillion nationwide.

• In times of financial hardship, alleviating mortgage burdens is essential for supporting affected households.
• The mortgage servicing industry plays a vital role in offering this assistance, yet there has been limited research modelling the complex relationship between households and servicers.
• To bridge this gap, we developed an agent-based model that explores household behavior and the effectiveness of relief measures during financial distress.