Understanding Mortgage Market Behavior: Creating Good Mortgage Options for All Americans

Over the last two decades, the rise of risk based pricing, the growing importance of the secondary mortgage market, and the emergence of mortgage brokers in the marketing and origination of residential home mortgages has keyed a virtual revolution in U.S. financial markets. The dramatic increase in mortgage lending – especially in non-prime lending – has brought with it a diverse array of new mortgage products. This growth has expanded access to credit to consumers who have not traditionally been well served by the mortgage market and has enabled millions of homeowners to tap accumulated home equity to help meet their consumption and investment needs…