We present 12 facts about the mortgage crisis. We argue that the facts refute the popular story that the crisis … resulted from finance industry insiders deceiving uninformed mortgage borrowers and investors. Instead, we argue that borrowers … prices. We then show that neither institutional features of the mortgage market nor financial innovations are any more likely …

mortgage crisis, which, in contrast to the preceding housing boom, was not accompanied by a rise in homeownership rates. Using …

equilibrium mortgage pricing model with heterogeneous borrowers and use it to show that equilibrium forces imply important cross …-subsidies from borrowers who rarely refinance to those who refinance often. Mortgage reforms can potentially reduce these regressive … example, many policies that lead to more frequent refinancing also increase equilibrium mortgage rates and thus reduce …

securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long …

securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long … origins of the crisis and have important policy implications. - Lending standards ; monetary policy ; securitization ; bank …

securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long …

young, low net-worth households are able to get a mortgage and buy a house, and current (old) home-owners benefit from the …

risk in the mortgage market raises the default rate and spreads to the rest of the economy, creating a recession. In our … model two shocks are well suited to replicate the subprime crisis and the Great Recession: the mortgage risk shock and the … housing demand shock. Next we use our estimated model to evaluate a policy that reduces the principal of underwater mortgages …