Postcrisis Policies Drive Housing Inequility
By Sarah Chacko

Housing inequality has worsened since the 2008 financial crisis, despite trillions of dollars in affordable-housing subsidies, according to a paper by Karen Shaw Petrou, managing partner of Federal Financial Analytics, Inc. “Key inequality drivers are the [Federal Reserve’s] portfolio, ultralow interest rates, certain aspects of the new bank capital-and-liquidity rules, and the qualified-mortgage criteria,” she writes. Her paper outlines policy changes that congress and the White House might consider.