The Federal Reserve Bank of Boston recently issued an interesting analysis of the nature of the subprime mortgage crisis in Massachusetts. Using data on mortgages, home equity loans, and deeds recorded between January 1987 and March 2008, the researchers were able to examine in detail the nature of the loans that ended in foreclosure. Some of their conclusions are surprising, while most fall in line with what one might have guessed.
The report. “What (We Think) We Know about the Subprime Crisis and What We Don’t,” is fifty-seven pages long, but its key findings are straightforward and interesting:
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