In this article, published in International Real Estate Review (2016, vol. 19, no. 2), Jessie Zhang and a coauthor explore the cause of the long and far-reaching effect of the current subprime-induced crisis. Using qualitative and quantitative models, the authors show that the low interest rate and passive market supervisory policies made by the US government are among the main drivers of the housing boom. During the housing bust, despite a more aggressive regulatory environment, several conflicting policies that were implemented may have prolonged and deepened the recession. Based on these hypotheses, the authors argue that contagious real estate cycles can be prevented and/or controlled by more proactive counter-cyclical government intervention. Click the link below to read the article.
Community credit needs assessments—why now?
The CFPB has discarded the statistically based analyses that were key to investigating and uncovering systematic patterns. While institutions may find the...