Book Description:
In this book, the authors provide an overview of the subprime mortgage securitization process and the seven key informational frictions that arise. They discuss the ways that market participants work to minimize these frictions and speculate on how this process broke down. They continue with a complete picture of the subprime borrower and the subprime loan, discussing both predatory borrowing and predatory lending. They present the key structural features of a typical subprime securitization, document how rating agencies assign credit ratings to mortgage-backed securities, and outline how these agencies monitor the performance of mortgage pools over time.

Table of Contents:
Preface

Chapter 1. Federal Reserve Bank of New York Staff Reports: Understanding the Securitization of Subprime Mortgage Credit, pp.1-80

Chapter 2. Understanding the Subprime Mortgage Crisis, pp.81-108

Chapter 3. Information on Recent Default and Foreclosure Trends for Home Mortgages and Associated Economic and Market Developments, pp.109-134

Chapter 4. Subprime Mortgages: Primer on Current Lending and Foreclosure Issues, pp.135-144

Chapter 5. Policy Options for the Housing and Financial Markets, pp.145-178

Index