After at least a decade of escalating housing prices and speculative financing, the subprime mortgage meltdown triggered a crisis that led to the Great Recession. Scholar Ned Gramlich’s warned policymakers about predatory lending in the Urban Institute Press book Subprime Mortgages: America’s Latest Boom and Bust. Several of the book’s recommendations were later adopted by the Federal Reserve Board to tighten mortgage-lending standards. In 2013, the Urban Institute established the Housing Finance Policy Center, led by Wall Street analyst Laurie Goodman. The center aims to bring timely, impartial analyses to decisionmakers grappling with how best to rebuild the housing finance system, to inform legislative proposals, and to show how capital market regulatory policy affects families and communities.
The Mortgage Crisis and Its Fallout