Europe May Provide Lessons on Preventing Mortgage Defaults
The Regional Economist
Download Document| Date Published | |
| Version | |
| Primary Author | Juan Carlos Hatchondo, Leonardo Martinez and Juan M. Sánchez |
| Other Authors | |
| Theme | Comparing Housing Finance Systems |
| Country |
Abstract
It is well-known that house prices declined sharply and mortgage defaults increased abruptly from 2006 to 2010 in the U.S. In Europe, where mortgage regulations are significantly different, the behavior of house prices and mortgage defaults displays somewhat different dynamics. Comparing the experiences in these two regions sheds light on the impact of alternative regulations.