Fernando Ferreira, Joseph Gyourko, 19 June 2015

The recent housing bust has been among the most notable economic events of recent years. This column argues that the foreclosure crisis was something much more than a subprime sector issue. Though the housing crisis started as a subprime sector event, it was quickly dominated by prime borrowers losing their homes. The findings also indicate that the main predictor of home loss, regardless of borrower’s type, has been the current loan-to-value ratio.


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