Contrary to the prevailing view that only borrowers with pristine credit records can get a mortgage these days, many risky loans are still being made. A new index published by the International Center on Housing Risk at the American Enterprise Institute shows that many of today's mortgages would not perform well under stressful conditions. In my April 2014 UCLA Economic Letter, my AEI colleague, Edward J. Pinto, and I examine the latest research on risky home loans and the threat of another housing bubble.
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05/01/2014
Homebuyers: Proceed With Caution
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