Credit Booms and Lending Standards: Evidence from the Subprime Mortgage Market

Material TypeArticleLanguageEnglish
TitleCredit Booms and Lending Standards: Evidence from the Subprime Mortgage Market Author(S)GIOVANNI DELL’ARICCIA (Author)
Abstract  This paper links the U.S. subprime mortgage crisis to demand-side factors that contributed to the rapid expansion of the U.S. mortgage market. We show that denial rates were relatively lower in areas that experienced faster credit demand growth and that lenders in these high-growth areas attached less weight to applicants’ loan-to-income ratios. The results are robust to controlling for supply-side factors, including house price appreciation ...Paginationp367–384
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Money, Credit, and Banking  
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