Money for Nothing and Checks for Free: Recent
Developments in U.S. Subprime Mortgage Markets
IMF Working Paper No. 07/188:

Author/Editor: Kiff, John; Mills, Paul S.

Summary: After a number of warning signs, the U.S. "subprime mortgage
crisis" became a headline issue in February 2007. Notwithstanding the
bankruptcy of numerous mortgage companies, historically high
delinquencies and foreclosures, and a significant tightening in subprime lending
standards, the impact thus far on core U.S. financial institutions has
been limited. This paper reviews the history and structure of the
subprime market. The results suggest that new origination and funding
technology appear to have made the financial system more stable at the expense
of undermining the effectiveness of consumer protection regulation.
Potential solutions to the management of this trade-off are then explored.
 
http://www.imf.org/external/pubs/cat/longres.cfm?sk=21200.0