Collateral damage: Foreclosures and new mortgage lending in the 1930s

Although severe crises in housing markets contributed to both the Great Recession of 2007 and the Great Depression of the 1930s, the role that housing-related financial frictions played in the crises has yet to be explored. This column investigates the impact that foreclosures had on the supply of new home mortgage loans during the housing crisis of the 1930s. It shows that an increase in foreclosed real estate on a building and loan associations’ balance sheets had a powerful and negative effect on new mortgage lending during the 1930s.

Books: mortgage debt

Collateral damage: Foreclosures and new mortgage lending in the 1930s

The US Postal Savings System and the Collapse of B&L Associations

Columns

Jonathan Rose - Federal Reserve Historian - St. Louis Fed

The 2008 Crisis & The Fed's Response, by CryptoFemme

Mortgage Lending Practices

Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s, The Journal of Economic History

Mortgage Mess in Cleveland

Collateral Damage From Fed Policy (2) – A Broken Housing Market

Foreclosed by Daniel Immergluck, Paperback

Collateral Damage: The Impact of Foreclosures on New Home Mortgage Lending in the 1930s, The Journal of Economic History

The U.S. Foreclosure Crisis Was Not Just a Subprime Event

Have Borrowers Recovered from Foreclosures during the Great Recession? - Federal Reserve Bank of Chicago