Home > Uncategorized > Freakonomics » Did Lobbying Contribute to the Financial Crisis?

Freakonomics » Did Lobbying Contribute to the Financial Crisis?

“[L]obbying was associated with more risk-taking during 2000-07 and with worse outcomes in 2008. In particular, lenders lobbying more intensively on issues related to mortgage lending and securitization (i) originated mortgages with higher loan-to-income ratios, (ii) securitized a faster growing proportion of their loans, and (iii) had faster growing originations of mortgages. Moreover, delinquency rates in 2008 were higher in areas where lobbying lenders’ mortgage lending grew faster.”

via Freakonomics » Did Lobbying Contribute to the Financial Crisis?.

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