The Unassuming Economist

More specifically, on mortgage availability, the report says that “A tighter regulatory regime for mortgage lending has helped better match the costs of such financing with the underlying risks. However, as a consequence, the recovery in the U.S. housing market has been held back by a continued conservative approach to mortgage lending, particularly to lower-rated borrowers. This has been driven by a range of factors that include persistent anxiety about potential “put-back” risks (…); litigation and reputational risks to lenders; a tighter regulatory environment and supervisory scrutiny; and uncertainty about the future structure of the mortgage industry.”