A working paper may prove a big perception about the housing meltdown to be a misconception, MarketWatch reports.
The common perception is that loans the federal government pressured banks to make to the poor caused the housing meltdown. But a study by finance experts from the Massachusetts Institute of Technology, Dartmouth College and Duke University found that mortgages made in the years leading to the burst were mostly middle- and high-income borrowers, and the poor’s share of mortgages did not increase.
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