منابع مشابه
On the Economics of Subprime Lending
U.S. mortgage markets have evolved radically in recent years. An important part of the change has been the rise of the “subprime” market, characterized by loans with high default rates, dominance by specialized subprime lenders rather than full-service lenders, and little coverage by the secondary mortgage market. In this paper we examine these and other “stylized facts” with standard tools use...
متن کاملSubprime Market Growth and Predatory Lending
This article provides an overview of two core issues related to subprime market growth and predatory lending. Two general issues were addressed. First, the rapid growth of subprime lending in minority neighborhoods has raised questions concerning the absence of prime conventional lenders in these neighborhoods. There is evidence that more competition by prime lenders could lower the borrowing c...
متن کاملSubprime Lending and House Price Volatility
This paper establishes a theoretical and empirical link between the use of aggressive mortgage lending instruments, such as interest only, negative amortization or subprime, mortgages and the underlying house price volatility. Such instruments, which come into existence through innovation or financial deregulation, allow more borrowing than otherwise would occur. Within the context of a theoret...
متن کاملLiquidity Constraints and Imperfect Information in Subprime Lending
Access to credit markets is generally considered a hallmark of developed economies. In the United States, most households appear to have substantial ability to borrow; indeed, households in the United States have an average of over $23,000 in nonmortgage debt alone. Nevertheless, economists often point to limited borrowing opportunities for lower-income households to explain anomalous findings ...
متن کاملEquilibrium Lending Mechanism and Aggregate Activity
This version: May, 2008 Abstract We construct a model of the credit market where lenders use two incentive devices, monitoring and termination, to enforce truth-telling and effort-making. The economy’s aggregate activity and its equilibrium lending mechanism are determined jointly and endogenously. We analyze how changes in the model’s exogenous variables, including the returns of the economy’s...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.1587388