Money for Nothing and Checks for Free: Recent Developments in U.S. Subprime Mortgage Markets
By Paul Mills, J. Kiff. Social Science Research Network, 2007
123 citations recorded by the source corpus.
After a number of warning signs, the U.S. "subprime mortgage crisis" became a headline issue in February 2007. Notwithstanding the bankruptcy of numerous mortgage companies, historically high delinquencies and foreclosures, and a significant tightening in subprime lending standards, the impact thus far on core U.S. financial institutions has been limited. This paper reviews the history and structure of the subprime market. The results suggest that new origination and funding technology appear to have made the financial system more stable at the expense of undermining the effectiveness of consumer protection regulation. Potential solutions to the management of this trade-off are then explored.
Subfields: Economics and Econometrics, Law
View Paper: https://www.semanticscholar.org/paper/62d23f29a3abd334789daea7dbff53b681d99e87
How researchers see this paper
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In Economics and Econometrics
- Martin F. Hellwig
- Paul A. Langley
- Sarah Hall
- William S. Neilson
- Andrew Leyshon
- Roger J. A. Laeven
- Paul Embrechts
- Catherine Donnelly
In Law
Citations in the corpus
- Sub-prime mortgage lending: a cultural economy (2008, background): “The ‘spreading’ of default sub-prime mortgage risks through the tools and performances of securitization and structured finance is cast in highly favourable terms by a recent contribution to the IMF’s working paper series (Kiff & Mills, 2007).”
- The Panic of 2007 (2008, unknown): “4% 2002 $2,885 $231 8.0% $121 52.7% 2003 $3,945 $335 8.5% $202 60.5% 2004 $2,920 $540 18.5% $401 74.3% 2005 $3,120 $625 20.0% $507 81.2% 2006 $2,980 $600 20.1% $483 80.5% Sources: Inside Mortgage Finance, The 2007 Mortgage Market Statistical Annual, Key Data (2006), Joint Economic Committee (October”
- Systemic Risk in the Financial Sector: An Analysis of the Subprime-Mortgage Financial Crisis (2009, background): “46 Demyanyk and Van Hemert (2008); see also Kiff and Mills (2007). 47 UBS (2008).”
- Financial Spillovers to Emerging Markets During the Global Financial Crisis (2009, unknown): “1 See Kiff and Mills (2008) for details on the structure of the U.”