It's Not Just Subprime!
Ramon P. DeGennaro
University of Tennessee, Knoxville - Department of Finance
September 20, 2009
Journal of Private Enterprise, Vol. 25, No.1, 2009
Many writers have been quick to blame the high rate of foreclosures on subprime mortgages on what they call greedy, predatory lenders who exploited poor, unsophisticated and uneducated borrowers. The problem with this interpretation is that it cannot explain the behavior of foreclosure rates on prime mortgages. Examining the foreclosure rates on fixed- and adjustable- rate loans offers a better interpretation.
Keywords: subprime, mortgages, predatory lending
JEL Classification: G21, L85
Date posted: September 21, 2009 ; Last revised: December 24, 2009