2009: Underwriting, Mortgage Lending, and House Prices: 1996–2008

  • James A. Wilcox


Underwriting standards for residential mortgages (henceforth: underwriting) are now generally regarded as having been unusually lax during the mid-2000s. Underwriting then tightened up again during the financial crisis that began in 2007. The laxity of underwriting and its ensuing tightness since the mid-1990s likely contributed considerably to the unprecedented rise and subsequent fall of mortgage volumes and house prices.


Gross Domestic Product House Price Federal Reserve Mortgage Market Principal Component Method 
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  1. Demyanyk, Yuliya, and Otto Van Hemert, Forthcoming. “Understanding the Subprime Mortgage Crisis,” available at SSRN:
  2. Federal Reserve May 2009. “The April 2009 Senior Loan Officer Opinion Survey on Bank Lending Practices,” Washington, DC, Scholar
  3. Office of the Comptroller of the Currency June 2008. “Survey of Credit Underwriting Practices 2008,” Washington, DC, Scholar
  4. Sherlund, Shane M. 2008. “The Past, Present, and Future of Subprime Mortgages,” Finance and Economics Discussion Series No. 2008–63. Divisions of Research & Statistics and Monetary Affairs. Federal Reserve Board, Washington, DC.Google Scholar

Copyright information

© James A. Wilcox 2016

Authors and Affiliations

  • James A. Wilcox
    • 1
  1. 1.University of California, BerkeleyUSA

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