Term used to represent the rapid growth and unsustainable housing prices that eventually "burst" at the beginning of the recession
What is the housing bubble?
100
In response to the crisis, this "federal" entity undertook a series of aggressive monetary policy actions and launched a number of programs to support liquidity and lending activity in key financial markets
What is the Federal Reserve?
100
The housing sector "gross"-ly effects the direct contribution of residential construction to this economic indicator
What is GDP?
100
During the standard loan origination process an underwriter provides these legally binding assurances backing the veracity of collected information
What are resprentations and warranties (R&W)?
100
HAMP
What is the Home Affordable Modification Program?
200
The single most important asset for a majority of Americans
What is housing?
200
One of two popular GSEs that received increased funding from the Treasury Department through the Making Home Affordable (MHA) program early in the recovery effort
What is Fannie Mae or Freddie Mac?
200
Housing wealth has a direct impact on this household function related to the purchase of goods and services
What is consumption?
200
Loans originated by mortgage brokers with little or no documentation that were easily falsified
What are liar loans?
200
PRA
What is the Principal Reduction Alternative?
300
Term used to describe an "underwater" asset, as when a house is worth less than the remainder of its mortgage
What is negative equity?
300
Four of the six states with the highest incidence of negative equity
What is Arizona, California, Florida, Georgia, Michigan, or Nevada?
300
The fraction of each additional dollar in wealth consumed in a given year
What is the MPC, or marginal propensity to consume
300
The separation of mortgage ownership and servicing gave rise to a number of these moral battles between loan investors and their servicers, which made problem mortgages more difficult to address
What are incentive conflicts?
300
EHLP
What is the Emergency Homeowners Loan Program?
400
A hands-off approach that relies on the market to work out the kinks in the housing market without governmental intervention
What is laissez-faire?
400
Underwater borrowers find it difficult to take advantage of record low interest rates through refinancing because lenders are unwilling to take on this type of credit risk
What is uncollateralized credit?
400
The term used to describe the process homeowners use to gain equilibrium in their household balance sheets, either through defaulting on their debt obligations, accelerating repayment of their debts, or repairing their asset base through more aggressive saving
What is deleveraging?
400
Because this alteration is expensive and risky, servicers have an incentive to pursue foreclosures as the least legally contentious option even though it is not necessarily the optimal solution
What is loan modification?
400
HERA
What is the Housing and Economic Recovery Act?
500
The loss of more than $7 trillion in this type of asset has prolonged and deepened the economic downturn and has been a headwind for the subsequent recovery
What is housing wealth?
500
These properties are costly and damaging to neighborhoods as they have a spillover effect on valuations of neighboring homes
What are foreclosures (foreclosed properties)?
500
Demand for this homeowner alternative is like to grow at a healthy rate over the next few years, creating an ongoing need to convert existing homes into temporary dwellings
What is rental housing?
500
In a twist on a common description of martgage securitization, "originate-to-distribute," the business model of relying on independent mortgage brokers to carry out customer prospecting and loan underwriting was labeled as this instead