{
  "title": "Money for Nothing and Checks for Free: Recent Developments in U.S. Subprime Mortgage Markets",
  "publication": "IMF Working Papers, July 1, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/money-for-nothing-and-checks-for-free-recent-developments-in-u-s-21200",
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  "summary": "After a number of warning signs, the U.S. \"subprime mortgage crisis\" became a headline issue in February 2007. Notwithstanding the bankruptcy of numerous mortgage companies, historically high delinquencies and foreclosures, and a significant tightening in subprime lending standards, the impact thus",
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    {
      "heading": "Summary",
      "content": "- After a number of warning signs, the U.S. \"subprime mortgage crisis\" became a headline issue in February 2007.\n- Notwithstanding the bankruptcy of numerous mortgage companies, historically high delinquencies and foreclosures, and a significant tightening in subprime lending standards, the impact thus far on core U.S. financial institutions has been limited.\n- The paper reviews the history and structure of the subprime market and explores potential solutions to a key trade-off."
    },
    {
      "heading": "Key findings and analysis",
      "content": "- New origination and funding technology appear to have made the financial system more stable.\n- The same technological changes have undermined the effectiveness of consumer protection regulation.\n- The paper assesses the history and structure of the subprime market to support these conclusions."
    },
    {
      "heading": "Policy implications and potential solutions",
      "content": "- The paper explores potential solutions to manage the trade-off between increased financial stability from new origination and funding technologies and weakened consumer protection regulation.\n- Specific policy recommendations are discussed in the paper (details not reproduced on the landing page)."
    },
    {
      "heading": "Subject and keywords",
      "content": "- Subject: Credit, Housing prices, Loans, Mortgages, Securities\n- Keywords: borrower, loan, mortgage, securitization, subprime mortgage, tranche, WP\n\n---\n\n Content in this bundle\n\n- 1. Homeownership Rate\n  - 1. Homeownership Rate (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. Homeownership Rate (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/money-for-nothing-and-checks-for-free-recent-developments-in-u-s-21200"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/money-for-nothing-and-checks-for-free-recent-developments-in-u-s-21200/index.md)",
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    "Authors: Paul S. Mills, John Kiff",
    "Published: July 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451867527.001",
    "After a number of warning signs, the U.S. \"subprime mortgage crisis\" became a headline issue in February 2007.",
    "Notwithstanding the bankruptcy of numerous mortgage companies, historically high delinquencies and foreclosures, and a significant tightening in subprime lending standards, the impact thus far on core U.S. financial institutions has been limited.",
    "The paper reviews the history and structure of the subprime market and explores potential solutions to a key trade-off.",
    "New origination and funding technology appear to have made the financial system more stable.",
    "The same technological changes have undermined the effectiveness of consumer protection regulation.",
    "The paper assesses the history and structure of the subprime market to support these conclusions.",
    "The paper explores potential solutions to manage the trade-off between increased financial stability from new origination and funding technologies and weakened consumer protection regulation.",
    "Specific policy recommendations are discussed in the paper (details not reproduced on the landing page).",
    "Subject: Credit, Housing prices, Loans, Mortgages, Securities",
    "Keywords: borrower, loan, mortgage, securitization, subprime mortgage, tranche, WP",
    "**1. Homeownership Rate**"
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