Unsafe Loans in a Deregulated U.S. Mortgage Market

30 Pages Posted: 8 Apr 2009

See all articles by Vincent DiLorenzo

Vincent DiLorenzo

St. John's University - School of Law

Date Written: April 7, 2009


This article explores actual market outcomes in a deregulated mortgage market to ascertain if market discipline can be relied upon to ensure safe and sound loan products. In part one of this article the bank regulators' decisions to deregulate the mortgage market are set forth. In part two the outcomes generated by such a legal environment are presented. Such outcomes reveal steadily increasing availability and acceptance of risky loan products, resulting in equity stripping due to subsequent defaults. In part three of the article an alternative regulatory approach is offered - one that imposes a minimum, required level of safety for all loan products.

Suggested Citation

DiLorenzo, Vincent, Unsafe Loans in a Deregulated U.S. Mortgage Market (April 7, 2009). St. John's Legal Studies Research Paper No. 09-0170, Available at SSRN: https://ssrn.com/abstract=1374383 or http://dx.doi.org/10.2139/ssrn.1374383

Vincent DiLorenzo (Contact Author)

St. John's University - School of Law ( email )

8000 Utopia Parkway
Jamaica, NY 11439
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics