A New Look at the U.S. Foreclosure Crisis: Panel Data Evidence of Prime and Subprime Borrowers from 1997 to 2012 / Fernando Ferreira, Joseph Gyourko.

Format:

Book

Author/Creator:

Ferreira, Fernando.

Contributor:

National Bureau of Economic Research.

Gyourko, Joseph.

Series:

Working Paper Series (National Bureau of Economic Research) no. w21261.

NBER working paper series no. w21261

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

New Look at the U.S. Foreclosure Crisis

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

Utilizing new panel micro data on the ownership sequences of all types of borrowers from 1997-2012 leads to a reinterpretation of the U.S. foreclosure crisis as more of a prime, rather than a subprime, borrower issue. Moreover, traditional mortgage default factors associated with the economic cycle, such as negative equity, completely account for the foreclosure propensity of prime borrowers relative to all-cash owners, and for three-quarters of the analogous subprime gap. Housing traits, race, initial income, and speculators did not play a meaningful role, and initial leverage only accounts for a small variation in outcomes of prime and subprime borrowers.

Notes:

Print version record

June 2015.