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Lone Star Survivor

Why did Texas, remarkably, escape the worst of the burst of the real estate bubble? The state has had a comparatively low mortgage default rate through the recession, and Alyssa Katz looks at the broader secret to the state’s success, and what Washington might learn from it.
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Why did Texas, remarkably, escape the worst of the burst of the real estate bubble? The state has had a comparatively low mortgage default rate through the recession, and Alyssa Katz writes that the broader secret to the state’s success may be that it limits “cash-out” refinancing and home-equity lending. Even though not everyone loves the state’s borrowing rules, maybe Washington can learn from Texas’s example.

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