Money for Nothing and Checks for Free: Recent Developments in U.S. Subprime Mortgage Markets
19 Pages Posted: 17 Aug 2007
Date Written: August 2007
Abstract
After a number of warning signs, the U.S. "subprime mortgage crisis" became a headline issue in February 2007. Notwithstanding the bankruptcy of numerous mortgage companies, historically high delinquencies and foreclosures, and a significant tightening in subprime lending standards, the impact thus far on core U.S. financial institutions has been limited. This paper reviews the history and structure of the subprime market. The results suggest that new origination and funding technology appear to have made the financial system more stable at the expense of undermining the effectiveness of consumer protection regulation. Potential solutions to the management of this trade-off are then explored.
Keywords: Working Paper, United States, Housing, Consumer credit, Financial institutions, Financial systems, Bankruptcy, Capital markets
Suggested Citation: Suggested Citation
0 References
0 Citations
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Turning a Blind Eye: Wall Street Finance of Predatory Lending
-
How Resilient are Mortgage Backed Securities to Collateralized Debt Obligation Market Disruptions?
By Joseph R. Mason and Joshua Rosner
-
New Landscape, New Challenges: Structural Change and Regulation in the U.S. Financial Sector