Research Primer: Subprime Mortgage Lending
NERA Economic Consulting has launched a series of working papers on the subprime mortgage lending market. If the first paper, The Subprime Meltdown: a Primer, is any guide, it looks to be a series well worth following. Amid all the hysteria surrounding the issue, NERA economists Dr. Faten Sabry and Dr. Thomas Schopflocher provide a clearly articulated primer on the subprime market and the factors behind the recent problems. It includes a description and history of the market, the participants and a useful diagram of the securitization structure.
A decade ago, five percent of mortgage loan originations were subprime;
by 2005 the figure had jumped to approximately 20 percent.
The paper does not force any premature conclusions, but lays out the various factors that have been cited as contributing to the increase in subprime originations and delinquencies in the last few years.
Forthcoming topics in the series will include: Finance & Accounting, Aspects of a Securitization, Anatomy of a Fraudulent Conveyance, De-Mystifying the Economics of Complex Mortgage Transactions, The Domino Effect: Economic Impact of When Exotic Mortgages Reset.
NERA Insights: Subprime Lending Series, Part I
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October 26th, 2007 at 12:46 pm
[…] -mind for many visitors to Research Recap. An “oldie but goldie” posted in June, NERA’s Subprime Mortgage Lending Primer continues to attract strong interest. Merrill Lynch’s massive writedown this week and the growing […]
December 21st, 2007 at 2:22 pm
[…] The origins of the subprime mortgage crisis are dissected in an article in the IMF’s Finance and Development magazine by Randall Dodd a Senior Financial Expert in the IMF’s Monetary and Capital Markets Department. The article provides a history of the evolution of the mortgage market and makes a useful companion to NERA Economic Consulting’s Subprime Mortgage Lending Primer […]
April 3rd, 2008 at 8:32 am
[…] award for longest time in the charts goes to the very first Research Primer we posted in June, on Subprime Mortgage Lending from NERA Economic […]
July 15th, 2008 at 9:02 am
[…] Stakes, and Emerging Trends, is the third in a series on subprime topics, following last June’s Subprime Meltdown Primer and December’s Understanding Accounting-related […]