Liar’s Loans, Mortgage Fraud, and the Great Recession

Herndon, Thomas

doi:10.1080/09538259.2020.1747746

Cited by 1 publication

(1 citation statement)

References 21 publications

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“…Those include the deregulation of interest rates and other financial charges, the creation of new credit products to extract equity, the increase of loan-to-values ratios, that is the lowering of required down payments on purchases, as well as availability of better information on the quality of the borrowers. Authors, more or less convincingly, recall the influence of new aggressive marketing strategies and credit instruments, predatory and even criminal behavior (Black et al 1995, Wray 2008, Dymski 2009, Mian and Sufi 2009, Kaboub et al 2010, Keys et al 2010Herndon 2017. In a controversial book, Rajan (2010, 39) suggested that the government "cynically" pushed easy credit, deregulation and an aggressive housing policy, to temporarily please an impoverished middle class.…”

Section: Household Debt and Financial Decisionsmentioning

confidence: 99%

Mapping fragility – Functions of wealth and social classes in U.S. household finance

Costantini,

D’Ippoliti

2024

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Which households are more exposed to financial risk and to what extent is their debt systemically relevant? To provide an answer, we advance a new classification of the population, adapted from Fessler and Schürz (2017), based on the type of wealth families own and their sources of income. Then, we investigate data from eleven waves of the Survey of Consumer Finances (SCF), a triennial survey run by the U.S. Federal Reserve, to explore the association of different debt configurations and motives to get into debt with our class distinctions. Our new approach allows us to assess competing hypotheses about debt and financial vulnerability that have so far been analyzed separately in disconnected strands of literature. The results of our study reinforce and qualify the controversial hypothesis that relative poverty and inequality of income and access to services have been important factors explaining household indebtedness and its relationship with economic growth over time.

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Section: Household Debt and Financial Decisionsmentioning

confidence: 99%

Mapping fragility – Functions of wealth and social classes in U.S. household finance

Costantini,

D’Ippoliti

2024

View full text Add to dashboard Cite

show abstract

Liar’s Loans, Mortgage Fraud, and the Great Recession

Cited by 1 publication

References 21 publications

Mapping fragility – Functions of wealth and social classes in U.S. household finance

Mapping fragility – Functions of wealth and social classes in U.S. household finance

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