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: http://ssrn.com/abstract=1020396.
  2. Federal Reserve May 2009. “The April 2009 Senior Loan Officer Opinion Survey on Bank Lending Practices,” Washington, DC, www.federalreserve.gov/boarddocs/SnLoanSurvey/200905.Google Scholar
  3. Office of the Comptroller of the Currency June 2008. “Survey of Credit Underwriting Practices 2008,” Washington, DC, www.occ.treas.gov/cusurvey/2008UnderwritingSur-vey.pdf.Google 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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