The role of sustainable financial behaviors, environmental influences, and personal factors in predicting timely mortgage payments: evidence from the great-recession

This study investigated the role of environmental influences, personal factors, and attributes of sustainable financial behaviors in predicting timely mortgage payments post the Great Recession. This analysis used Multinomial Logistic regression models with three waves of data from the National Financial Capability Study datasets to estimate the likelihood of making timely mortgage payments. Consistent patterns emerged in the key findings across all three years of data (2009, 2012, and 2015) for both Model 1 and Model 2, aligning closely with expected theoretically supported connections. The initial model revealed that the personal factor, namely financial self-efficacy was a predictor of timely mortgage payment outcomes. In the second model, financial self-efficacy and sustainable financial behaviors emerged as predictors of timely mortgage payments. Although there is substantial interest in understanding consumer behaviors regarding mortgage payment outcomes, there is a scarcity of research focusing on the influence of acquired sustainable financial behaviors on favorable financial results. This study makes a significant contribution to the field of personal financial planning by highlighting the predictive power of environmental influences, personal factors, and responsible financial behaviors on timely mortgage payments in the aftermath of the Great Recession. It offers a contemporary and forward-looking perspective on sustainable financial behaviors, aiming to inspire increased engagement from financial institutions to encourage more proactive measures in promoting sustainable financial behaviors among consumers of mortgage products.