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1. Europe May Provide Lessons on Preventing Mortgage Defaults.

Author

Hatchondo, Carlos, Martinez, Leonardo, and Sánchez, Juan M.

Subjects
HOME prices, MORTGAGE loan default
Abstract

The article discusses compares house prices and mortgage defaults in the U.S. and Europe during 2007 to 2010. It also discusses two regulations used in Europe to prevent mortgage defaults as stated in a report published by the International Monetary Fund (IMF) in 2011. It is informed that in Europe, mortgages are recourse loans and there is limit of the amount that households can borrow by using their house as collateral.

Published
2013

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