Villains or Scapegoats? The Role of Subprime Borrowers in Driving the U.S. Housing Boom

James Conklin, W Frame, Kristopher Gerardi and Haoyang Liu ()

No 2018-10, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: An expansion in mortgage credit to subprime borrowers is widely believed to have been a principal driver of the 2002?06 U.S. house price boom. Contrary to this belief, we show that the house price and subprime booms occurred in different places. Counties with the largest home price appreciation between 2002 and 2006 had the largest declines in the share of purchase mortgages to subprime borrowers. We also document that the expansion in speculative mortgage products and underwriting fraud was not concentrated among subprime borrowers.

Keywords: mortgages; subprime; house prices; credit scores; housing boom (search for similar items in EconPapers)
JEL-codes: D14 D18 D53 G21 G38 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2018-08-01
New Economics Papers: this item is included in nep-ban and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.frbatlanta.org/-/media/documents/resea ... -boom-2018-08-28.pdf Full text (application/pdf)

Related works:
Journal Article: Villains or scapegoats? The role of subprime borrowers in driving the U.S. housing boom (2022)
Working Paper: Villains or Scapegoats? The Role of Subprime Borrowers in Driving the U.S. Housing Boom (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:2018-10

Ordering information: This working paper can be ordered from

DOI: 10.29338/wp2018-10

Access Statistics for this paper

More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by Rob Sarwark ().