The article discusses how changes in mortgage lending standards and economic conditions have led to an increase in foreclosures. Researchers developed a method to separate the impact of economic factors from underwriting changes on mortgage performance. They found that both factors contributed equally to the mortgage crisis. While underwriting standards were relaxed in the 1990s, economic conditions masked the negative effects. After 2002, even with stable loan characteristics, mortgage performance worsened due to hidden risks in underwriting. This suggests that mispricing of risks in mortgage securitizations led to the meltdown.