Financial crisis and the U.S. mortgage markets - a review

In the thirteen years since the onset of the 2007-2008 financial crisis, economists and researchers have thoroughly investigated the financial crisis. We conduct a selective review of the extant literature on the financial crisis, with special emphasis on the U.S. mortgage markets, as they were the epicenter of this crisis. We synthesize the insights the literature provides primarily on the dimensions of causes of the crisis, the consequences of it, the various policies and remedies that were tried out to deal with the crisis and their efficacy, as well the policy prescriptions to prevent recurrence and if it still occurs, the most efficient ways of dealing with it. We hope that this review helps future researchers in understanding the various aspects of the crisis and conducting further research.