Subprime Outcomes: Risky Mortgages, Homeownership Experiences, and Foreclosures
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منابع مشابه
The Unraveling of the American Dream
Based in large part on the increased availability of new mortgage products that were often aggressively marketed to minority households, a generally healthy economy, and government policies that encouraged homeownership, a substantial number of Black, Hispanic, and foreign-born households became homeowners in the last 15 years. As a result, the homeownership rates for these demographic groups r...
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Why did the mortgage market melt down so badly? Why were there so many defaults when the economy was not particularly weak? Why were the securities based upon these mortgages not considered anywhere as risky as they actually turned out to be? It is the thesis of this paper that, in an attempt to increase homeownership, particularly by minorities and the less affluent, an attack on underwriting ...
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The recent sharp increase in subprime mortgage delinquencies has captured the public spotlight and led analysts to search for the factors that are likely to have contributed to the problem.These factors commonly include the lack of income documentation, high loan-to-income ratios, the lowering of credit standards, and the resets on adjustable-rate loans, to name but a few. Although these factor...
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Although the rise in subprime lending and the ensuing wave of foreclosures was partly a result of market forces that have been well-identified in the literature, in the United States it was also a highly racialized process. We argue that residential segregation created a unique niche of poor minority clients who were differentially marketed risky subprime loans that were in great demand for use...
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This paper analyses effects of an interest rate freeze in subprime mortgages on residential mortgage backed securities (RMBS). In particular, we study shifts in the underlying portfolio’s discounted cashflow distributions as well as changes in the payment profile of RMBS-tranches. We show that the positive effects of a rate freeze, e.g. less foreclosures and a stabilizing housing market, can ou...
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