Empirical research on the causes of financial crises has grown in recent decades. Early work, such as that by Kaminsky and Reinhart, helped establish the link between asset prices and banking crises. While this initial research focused on equity prices, subsequent research expanded the analysis...

Prior to the subprime crisis, mortgage brokers originated about 65% of all subprime mortgages. Yet little is known about their behavior during the runup to the crisis. Using data from New Century Financial Corporation, we find that brokers earned an average revenue of $5,300 per funded loan. We...

The financial collapse of Fannie Mae and Freddie Mac in 2008 led to one of the most sweeping government interventions in private financial markets in history. The bailout has already cost American taxpayers close to 150 billion, and substantially more will be needed. The U.S. economy--and by...

Leading economists and other housing market researchers examine key elements of the mortgage meltdown in this volume of original essays. More than a critique in hindsight, this volume offers pragmatic solutions to the problems facing American home ownership.

Intro -- MISSION EXPANSION IN THE FEDERAL HOME LOAN BANK SYSTEM -- CONTENTS -- FIGURES AND TABLES -- PREFACE -- ACKNOWLEDGMENTS -- 1. GROWTH AND MISSION EXPANSION IN FEDERAL HOME LOAN BANKS -- 2. GROUNDED RESEARCH AND COMPETING PARADIGMS IN POLITICAL SCIENCE -- 3. HOUSING FINANCE MISSION -- 4....

We test the effects of uncertainty on market liquidity using Hurricane Sandy as a natural experiment. Given the unprecedented strength, scale and nature of the storm, the potential damages of a landfall near the Greater New York area were unpredictable and therefore uncertain. Using a...