|
 |
 |
Significant differences exist in the extent of the crisis across market areas.
The sharp rise in mortgage delinquencies and foreclosures is largely the result of rapid growth in loans with a high risk of default due both to the loan terms and to loosened underwriting controls and standards.
The rapid increase in housing prices in large swaths of the country through 2006 was possibly the most important ingredient that fostered a surge in risky lending.
Growth in no- and low-documentation loans and appraisal misrepresentations appear highly related to increased incidence of fraud.
In contrast to the dramatic changes in the structure of the mortgage market during the 1990s, little change in regulatory oversight of mortgage lending activity occurred.
The benefits of the GSE housing goals meant to increase homeownership rates among low-income and minority households were largely realized before the crisis.
|
|
Follow us on:
 |
|
