Sat, 26 Jul 2008 17:33:46 BST CiteULike: pdlug subprime http://www.citeulike.org/user/pdlug/tag/subprime CiteULike.org en-gb Copyright © 2004-2008 citeulike.org http://www.citeulike.org/user/pdlug/article/2731299 <i>Social Science Research Network Working Paper Series (29 February 2008)</i><br /><br />Using loan-level data, we analyze the quality of subprime mortgage loans by adjusting their performance for differences in borrower characteristics, loan characteristics, and house price appreciation since origination. We find that the quality of loans deteriorated for six consecutive years before the crisis and that securitizers were, to some extent, aware of it. We provide evidence that the rise and fall of the subprime mortgage market follows a classic lending boom-bust scenario, in which unsustainable growth leads to the collapse of the market. Problems could have been detected long before the crisis, but they were masked by high house price appreciation between 2003 and 2005. Understanding the Subprime Mortgage Crisis Yuliya Demyanyk Otto Hemert Social Science Research Network Working Paper Series (29 February 2008) 2008-04-28T23:25:08-00:00 2008 Social Science Research Network Working Paper Series economics mortgage subprime