An expansion in mortgage credit to subprime borrowers is widely believed to have been a principal driver of the 2002 … purchase mortgages to subprime borrowers. We also document that the expansion in speculative mortgage products and underwriting …

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

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 …. This policy is successful in stabilizing the mortgage market and makes all agents better off. …

to take a forward-looking approach to recognizing life-of-loan losses upon loan origination. Using bank mortgage approval … decrease in the sensitivity of mortgage approval rates to house price growth after adoption. The effect is stronger when …

asymptotically normal. Applying my estimator to the subprime mortgage crisis, I quantify what caused the foreclosure rate to triple … standards, with a 10% decline in home prices increasing subprime mortgage default rates by 50% …

-up to the 2007-09 global financial crisis; (2) the increase in housing demand in response to lower mortgage interest rates …

unsustainability of the credit driven housing boom of the early 2000's. This paper sheds light on when credit booms become bubbles and …