At their peak in 2005, roughly 60 percent of all purchase mortgage loans originated in the United States contained at … house prices and non-traditional features of mortgage contracts. We apply a break-point methodology and find that in housing … findings support the view that a change in mortgage contract availability and a shift toward subprime borrowers helped to fuel …

), whereby the household can default on mortgage repayments, what leads to housing collateral seizure. Foreign-owned banks, that … are subject to risk-sensitive macroprudential capital requirements, take into account not only the mortgage default rate … risk. Therefore, a tightening of LTV requirement should result in only a slight reduction in mortgage lending, coupled with …