The Pennsylvania State University Smeal College of Business

Real Estate Research @ Penn State

Welcome to Real Estate Research @ Penn State, a publication of the Institute for Real Estate Studies in the Smeal College of Business. As the focal point for Penn State’s “Research with Impact” in the real estate industry, the Institute publishes this periodic Report to highlight recent scholarship sponsored by the Institute.

This issue highlights an article co-authored by Brent Ambrose (IRES Director), Sumit Agarwal (National University of Singapore), and Yildiray Yildirim (Syracuse University) titled “The Subprime Virus”.  This paper explores a spillover effect from riskier lending activity onto the conventional mortgage market. While the results confirm the idea that higher risk underwriting may have destabilized local housing market, we frame the analysis in the context of the impact that such changes in underwriting may have had on portfolios of conventional mortgages. By examining the subprime mortgage crisis in this context, we provide bank regulators insights into mechanisms that can be employed to reduce future problems.

I hope that you find this article interesting and intellectually stimulating.

Brent W. Ambrose, Ph.D.

Smeal Professor of Real Estate

Director, Institute for Real Estate Studies

© 2012 - The Smeal College of Business
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