Publication:
The U.S. Subprime Mortgage Crisis: Issues Raised and Lessons Learned

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dc.contributor.authorJaffee, Dwight M.
dc.date.accessioned2017-08-28T17:01:28Z
dc.date.available2017-08-28T17:01:28Z
dc.date.issued2008
dc.description.abstractThe subprime mortgage crisis ranks among the most serious economic events affecting the United States since the great depression of the 1930s. This study analyzes key issues raised by the crisis at three levels: (i) issues directly and specifically relating to subprime mortgage lending; (ii) issues relating to the securitization of subprime mortgages; and (iii) issues affecting financial markets and institutions. These issues are fundamental to risk bearing, sharing, and transfer in financial markets and institutions around the world. Many of the issues raised by the U.S. subprime crisis also apply to high-risk loan markets in developing countries. The framework applied in the paper analyzes subprime mortgage lending as a major financial market innovation. Although conditions were conducive for subprime lending to arise as a financial innovation, financial innovations are necessarily risky undertakings, all the more so when they create new classes of risky loans and securities. The lessons learned from the crisis can thus be usefully applied to issues of the growth and development of emerging economies, as well as pointing the way to the design of new and efficient policies for subprime lending in the developed economies.en
dc.identifierhttp://documents.worldbank.org/curated/en/612021468130801823/The-U-S-subprime-mortgage-crisis-issues-raised-and-lessons-learned
dc.identifier.doi10.1596/28008
dc.identifier.urihttps://hdl.handle.net/10986/28008
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesCommission on Growth and Development Working Paper;No. 28
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectACCOUNTING
dc.subjectARBITRAGE
dc.subjectASSET CLASS
dc.subjectASSET MANAGERS
dc.subjectASSET-BACKED SECURITIES
dc.subjectASYMMETRIC INFORMATION
dc.subjectAUCTION
dc.subjectAUTO LOANS
dc.subjectBAILOUT
dc.subjectBANK INVESTORS
dc.subjectBANK LENDERS
dc.subjectBANKING REGULATIONS
dc.subjectBANKING SYSTEM
dc.subjectBANKRUPTCY
dc.subjectBENEFICIARIES
dc.subjectBORROWER
dc.subjectBROKERS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCATASTROPHE BONDS
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL MORTGAGE
dc.subjectCOMMERCIAL MORTGAGES
dc.subjectCOMMERCIAL PAPER
dc.subjectCOMMERCIAL PAPER MARKET
dc.subjectCOMPETITIVE MARKET
dc.subjectCONSUMER BORROWERS
dc.subjectCONSUMER LOANS
dc.subjectCONSUMER PROTECTION
dc.subjectCONSUMER PROTECTION LEGISLATION
dc.subjectCONTRACT DESIGN
dc.subjectCONTRACT DESIGNS
dc.subjectCOUPON
dc.subjectCOUPONS
dc.subjectCREDIT CARD
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAPS
dc.subjectCREDIT ENHANCEMENTS
dc.subjectCREDIT QUALITY
dc.subjectCREDIT RATING
dc.subjectCREDIT RATING AGENCIES
dc.subjectCREDIT RATINGS
dc.subjectCREDITORS
dc.subjectCREDITWORTHINESS
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEBT INSTRUMENTS
dc.subjectDEBT OBLIGATION
dc.subjectDEBT OBLIGATIONS
dc.subjectDEBT OUTSTANDING
dc.subjectDEBT RATIOS
dc.subjectDEBT SECURITIES
dc.subjectDEBT SERVICE
dc.subjectDEFAULT PROBABILITIES
dc.subjectDEFAULT RATE
dc.subjectDEFAULT RATES
dc.subjectDEFAULT RISK
dc.subjectDEFAULTS
dc.subjectDEFICITS
dc.subjectDEPOSIT
dc.subjectDEPOSITORY INSTITUTIONS
dc.subjectDEPOSITS
dc.subjectDERIVATIVE
dc.subjectDERIVATIVE INSTRUMENTS
dc.subjectDERIVATIVE MARKET
dc.subjectDERIVATIVE MARKETS
dc.subjectDERIVATIVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDIVERSIFIED INVESTORS
dc.subjectDIVERSIFIED PORTFOLIOS
dc.subjectDUE DILIGENCE
dc.subjectECONOMIC GROWTH
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING ECONOMY
dc.subjectEXCHANGE COMMISSION
dc.subjectEXPENDITURES
dc.subjectFEDERAL RESERVE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL RISK
dc.subjectFINANCIAL SERVICE PROVIDERS
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL POLICIES
dc.subjectFLOATING RATES
dc.subjectFORECLOSURE
dc.subjectFORECLOSURES
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN EXCHANGE
dc.subjectFRAUD
dc.subjectFUTURES
dc.subjectFUTURES MARKET
dc.subjectGOVERNMENT GUARANTEE
dc.subjectGOVERNMENT GUARANTEES
dc.subjectGOVERNMENT REGULATION
dc.subjectHEDGE FUND
dc.subjectHEDGE FUNDS
dc.subjectHOLDING
dc.subjectHOME LOAN
dc.subjectHOME MORTGAGE
dc.subjectHOME MORTGAGES
dc.subjectHOMEOWNERSHIP
dc.subjectILLIQUID MARKETS
dc.subjectILLIQUIDITY
dc.subjectINDIVIDUAL INVESTORS
dc.subjectINDIVIDUAL LOAN
dc.subjectINFLATION
dc.subjectINSTITUTIONAL INVESTORS
dc.subjectINSTRUMENT
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE RISK
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL SETTLEMENTS
dc.subjectINVENTORY
dc.subjectINVESTMENT ACTIVITIES
dc.subjectINVESTMENT BANK
dc.subjectINVESTMENT BANKS
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT FUNDS
dc.subjectINVESTMENT POLICY
dc.subjectINVESTMENT PORTFOLIOS
dc.subjectINVESTMENT STRATEGIES
dc.subjectINVESTMENT STRATEGY
dc.subjectINVESTMENT VEHICLES
dc.subjectINVESTOR LOSSES
dc.subjectLEGAL PROHIBITIONS
dc.subjectLEGAL SYSTEM
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLIABILITY
dc.subjectLIEN
dc.subjectLINE OF CREDIT
dc.subjectLIQUIDATION
dc.subjectLIQUIDITY CRISES
dc.subjectLOAN
dc.subjectLOAN APPLICATION
dc.subjectLOAN APPLICATIONS
dc.subjectLOAN DEFAULT
dc.subjectLOAN DEFAULTS
dc.subjectLOAN DEMANDS
dc.subjectLOAN MARKETS
dc.subjectLOAN OFFICERS
dc.subjectLOAN PERFORMANCE
dc.subjectLOAN TERMS
dc.subjectLOAN VOLUMES
dc.subjectLOANABLE FUNDS
dc.subjectLOCAL BANK
dc.subjectLONG TERM CAPITAL
dc.subjectLONG-TERM CAPITAL
dc.subjectLONG-TERM DEBT
dc.subjectMARK TO MARKET
dc.subjectMARK TO MARKET ACCOUNTING
dc.subjectMARKET DEVELOPMENTS
dc.subjectMARKET DISCIPLINE
dc.subjectMARKET ECONOMY
dc.subjectMARKET FAILURES
dc.subjectMARKET LIQUIDITY
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET PRICES
dc.subjectMARKET STABILITY
dc.subjectMARKET TRADING
dc.subjectMARKET VALUE
dc.subjectMATURITY
dc.subjectMATURITY MISMATCH
dc.subjectMATURITY MISMATCHES
dc.subjectMONETARY AUTHORITY
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectMORTGAGE BONDS
dc.subjectMORTGAGE FINANCE
dc.subjectMORTGAGE LOAN
dc.subjectMORTGAGE LOANS
dc.subjectMORTGAGE MARKET
dc.subjectMORTGAGE MARKETS
dc.subjectMORTGAGE-BACKED SECURITIES
dc.subjectMORTGAGES
dc.subjectNATURAL DISASTER
dc.subjectNATURAL DISASTERS
dc.subjectOUTSTANDING AMOUNT
dc.subjectOUTSTANDING LOANS
dc.subjectPENSION
dc.subjectPORTFOLIO
dc.subjectPORTFOLIOS
dc.subjectPRINCIPAL PAYMENTS
dc.subjectPROBABILITY OF DEFAULT
dc.subjectPROPERTY RIGHTS
dc.subjectPRUDENTIAL REGULATION
dc.subjectREAL ESTATE COLLATERAL
dc.subjectREAL ESTATE LOANS
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY STRUCTURE
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK ASSESSMENTS
dc.subjectRISK MANAGEMENT
dc.subjectRISK OF DEFAULT
dc.subjectRISKY LOAN
dc.subjectRISKY LOANS
dc.subjectRISKY SECURITIES
dc.subjectSECURITIES
dc.subjectSECURITIES INDUSTRY
dc.subjectSETTLEMENT
dc.subjectSETTLEMENT SYSTEMS
dc.subjectSHORT-TERM BORROWINGS
dc.subjectSTOCK BROKERS
dc.subjectSTOCK MARKET
dc.subjectTAX
dc.subjectTRADING
dc.subjectTRANCHE
dc.subjectTRANCHES
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSITION ECONOMIES
dc.subjectTREASURY
dc.subjectTREASURY BONDS
dc.subjectUNDERLYING MORTGAGES
dc.subjectUNDERWRITERS
dc.subjectVARIABLE RATE
dc.titleThe U.S. Subprime Mortgage Crisisen
dc.title.subtitleIssues Raised and Lessons Learneden
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2010-12-01
okr.date.doiregistration2025-04-15T11:42:11.577359Z
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/612021468130801823/The-U-S-subprime-mortgage-crisis-issues-raised-and-lessons-learned
okr.guid612021468130801823
okr.identifier.externaldocumentum000333038_20101201234552
okr.identifier.internaldocumentum13185483
okr.identifier.report57727
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/612021468130801823/pdf/577270NWP0Box353766B01PUBLIC10gcwp028web.pdfen
okr.region.countryUnited States
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicMacroeconomics and Economic Growth::Business Cycles and Stabilization Policies
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.unitUrban Dev. & Services Prac 1 (AFTU1)
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