Ross Lawrence and Brent C Smith
Problems in the housing sector have prompted research into the causes of default by borrowers. The terms of the loans that were made, the characteristics of borrowers, and local economic conditions, among other factors, all contributed significantly to differences in default rates. State-level legislation may also have played a role by making it more costly for lenders in some states to proceed to foreclose on defaulted mortgages.
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Goodman, Allen C., and Brent C. Smith, "Housing Default: Theory Works and So Does Policy." Federal Reserve Bank of Richmond Working Paper No. 10-10, May 2010.
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