After all, the collapse of Lehman Brothers had triggered the global financial crisis. Being afraid of something similar happening again is understandable. But bailing out banks is not the best response to such fears. First, it perverts banks’ incentives.
We study access to mortgage and small business credit for underserved populations and have participated in a pilot program teaching mortgage finance at select community colleges. This innovative program, targeted to minority students in underserved communities, trains individuals for a broad array of career opportunities in mortgage lending. We also are interested in measuring the effectiveness of financial education programs.