Finance

In the United States if the lender forecloses on a mortgage they take the house and, as far as the borrower is concerned, that’s the end of it, says Tomasz Piskorski of Columbia Business School. In Spain, however, the borrower has to go on paying even after they lose their home. He says he is concerned about “predatory lending,” lending money to people who can’t afford to repay it. Securitization in the mortgage market creates liquidity but, as we have seen, it also creates a lot of problems, Piskorski believes.