NERA Economic Consulting Announces Subprime Lending White Paper Series

26 June 2007

New York/ June 26, 2007 - A new white paper on subprime lending released today, from NERA Economic Consulting, a leading global provider of economic advice and analysis in business, legal, and regulatory matters, offers a comprehensive overview of the subprime mortgage industry and the process of securitization.

The subprime mortgage market -- which consists of loans to borrowers with high credit risk, and the mechanisms that have evolved to originate, service, and finance those loans -- is rapidly contracting as a result of mounting defaults and delinquencies.

To address these matters from an economic perspective, NERA's Securities and Finance Practice has created NERA Insights: Subprime Lending Series, a series of papers dedicated to the analysis of the subprime lending crisis.

In Part I of the series, "The Subprime Meltdown: A Primer," NERA Vice President Dr. Faten Sabry and Consultant Dr. Thomas Schopflocher examine the economic factors leading to the deterioration of the US subprime mortgage industry; identify factors that differ between the current crisis and the 1998 crisis; and discuss pending and potential litigation issues arising from the current industry difficulties.

Forthcoming topics in this series will include finance and accounting aspects of a securitization, the anatomy of a fraudulent conveyance, and the economics of complex mortgage transactions.

The first paper in the series, "The Subprime Meltdown: A Primer," and future editions may be found on the NERA website at

About NERA

NERA Economic Consulting ( is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For more than six decades, we have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world’s leading law firms and corporations. We bring academic rigor, objectivity, and real-world industry experience to issues arising from competition, regulation, public policy, strategy, finance, and litigation.

NERA’s clients value our ability to apply and communicate state-of-the-art approaches clearly and convincingly, our commitment to deliver unbiased findings, and our reputation for quality and independence. Our clients rely on the integrity and skills of our unparalleled team of economists and other experts backed by the resources and reliability of one of the world’s largest economic consultancies. Continuing our legacy as the first international economic consultancy, NERA serves clients from major cities across North America, Europe, and Asia Pacific.