{"product_id":"the-great-american-housing-bubble-adam-j-levitin-9780674979659","title":"The Great American Housing Bubble: What Went Wrong and How We Can Protect Ourselves in the Future","description":"\u003cp\u003e\u003cb\u003eThe definitive account of the housing bubble that caused the Great Recession--and earned Wall Street fantastic profits.\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\u003c\/p\u003eThe American housing bubble of the 2000s caused the worst global financial crisis since the Great Depression. In this definitive account, Adam Levitin and Susan Wachter pinpoint its source: the shift in mortgage financing from securitization by Fannie Mae and Freddie Mac to \"private-label securitization\" by Wall Street banks. This change set off a race to the bottom in mortgage underwriting standards, as banks competed in laxity to gain market share. \u003cp\u003e\u003c\/p\u003e\u003ci\u003eThe Great American Housing Bubble\u003c\/i\u003e tells the story of the transformation of mortgage lending from a dysfunctional, local affair, featuring short-term, interest-only \"bullet\" loans, to a robust, national market based around the thirty-year fixed-rate mortgage, a uniquely American innovation that served as the foundation for the middle class. \u003cp\u003e\u003c\/p\u003eLevitin and Wachter show how Fannie and Freddie's market power kept risk in check until 2003, when mortgage financing shifted sharply to private-label securitization, as lenders looked for a way to sustain lending volume following an unprecedented refinancing wave. Private-label securitization brought a return of bullet loans, which had lower initial payments--enabling borrowers to borrow more--but much greater back-loaded risks. These loans produced a vast oversupply of underpriced mortgage finance that drove up home prices unsustainably. When the bubble burst, it set off a destructive downward spiral of home prices and foreclosures. \u003cp\u003e\u003c\/p\u003eLevitin and Wachter propose a rebuild of the housing finance system that ensures the widespread availability of the thirty-year fixed-rate mortgage, while preventing underwriting competition and shifting risk away from the public to private investors.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e Adam J. Levitin, Susan M. Wachter\u003cbr\u003e\u003cb\u003eISBN-10:\u003c\/b\u003e 0674979656\u003cbr\u003e\u003cb\u003eISBN-13:\u003c\/b\u003e 9780674979659\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Harvard University Press\u003cbr\u003e\u003cb\u003eLanguage:\u003c\/b\u003e English\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 06\/09\/2020\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 400\u003cbr\u003e\u003cb\u003eFormat:\u003c\/b\u003e Hardcover\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 1.65lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 9.30h x 6.40w x 1.50d\u003cbr\u003e\u003cbr\u003e\u003cb\u003eReview Citation(s): \u003c\/b\u003e\u003cbr\u003e\u003ci\u003eKirkus Reviews\u003c\/i\u003e 03\/15\/2021","brand":"Adam J. Levitin","offers":[{"title":"Hardcover","offer_id":44756903919871,"sku":"9780674979659","price":48.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0662\/2982\/9887\/files\/img_26f15406-22e6-4d67-9494-33939d69f189.jpg?v=1706594119","url":"https:\/\/www.whiterainbookhouse.com\/products\/the-great-american-housing-bubble-adam-j-levitin-9780674979659","provider":"WR Book House","version":"1.0","type":"link"}