Overleveraged, from Main Street to Wall Street
Overview of the Housing and Mortgage Markets
Housing Units, Mortgage Debt, and Household Wealth
Types of Home Mortgages
Two Housing Finance Models: Originate-to-Hold vs. Originate-to-Distribute
Low Interest Rates Contribute to Credit Boom and Record Homeownership Rates
Mortgage Originations, Home Prices, and Sales Skyrocket
Buildup and Meltdown of the Mortgage and Credit Markets
What Is a Subprime Mortgage and Who Is a Subprime Borrower?
Subprime Lending Grows Rapidly and New Products Gain Acceptance
Subprime Mortgages Enable More Widespread Homeownership
Securitization Facilitates the Funding of Subprime Mortgages
The Housing Bubble Reaches the Breaking Point
The Collapse Begins
When Will the Crisis End?
What Is the Damage Scorecard to Date?
The Pain Spreads throughout the Financial Sector and Beyond
When Will We Hit Bottom?
What Went Wrong . . . ?
. . . with Origination Practices and New Financial Products?
. . . with Securitization and Rating Agencies?
. . . with Leverage and Accounting Practices?
. . . with Fannie Mae and Freddie Mac?
. . . with Tax Benefits for Homeownership?
. . . with Regulation and Supervision?
. . . with the Greed Factor?
Assessing the Role of Various Factors to Explain Foreclosures
So Far, Only Piecemeal Fixes
The Landscape Shifts for Lenders
The Federal Reserve Intervenes to Provide Liquidity and Higher-Quality Collateral
Congress and the White House Take Steps to Contain the Damage
The FDIC Takes Steps to Instill Greater Confidence in Depository Institutions
The Government's Actions Drive up the Deficit
Where Should We Go from Here?
Key Factors That Should Drive Reform
Issues for Policymakers
Concluding Thoughts.