Bill McBride — Research: Loan-to-income guidelines could have "forestalled much of the housing boom"

From the paper: Intuitively, a loan-to-income constraint represents a more prudent lending criterion than a loan-to-value constraint because income, unlike asset value, is less subject to distortions from bubble-like movements in asset prices.

Calculated Risk
Research: Loan-to-income guidelines could have "forestalled much of the housing boom"
Bill McBride