Securitization and house price growth

Genevieve Nelson

From 2000-2006 U.S. house prices and mortgage credit grew while the relative cost of mortgage credit fell - particularly for privately securitized mortgages - suggesting a credit supply expansion. This paper explores two (credit supply) shocks: an increased inow of global savings into the United States, and innovations in the securitization of mortgage credit. I model the interaction of financially constrained commercial banks and mortgage securitizers, generating a novel balance sheet effect: changes in the distribution ofaggregate mortgage credit quantity are linked to changes in mortgage spreads. Only innovation in securitization (direct relaxation of the securitizers' financial constraint) matches mortgage market dynamics.

MoreLess

Year of publication:	[2021]
Authors:	Nelson, Genevieve
Publisher:	Copenhagen : Danmarks Nationalbank
Subject:	Housing Finance \| Financial Sector \| USA \| United States \| Immobilienfinanzierung \| Real estate finance \| Immobilienpreis \| Real estate price \| Verbriefung \| Securitization \| Hypothek \| Mortgage \| Finanzsektor \| Financial sector \| Immobilienmarkt \| Real estate market

freely available

Full text |

More access options

www.nationalbanken.dk

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (circa 72 Seiten) Illustrationen
Series:	Working paper / Danmarks Nationalbank ; nr. 181 (28 June 2021)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/246002 [Handle]
Classification:	G21 - Banks; Other Depository Institutions; Mortgages ; G23 - Pension Funds; Other Private Financial Institutions ; E21 - Consumption; Saving ; E44 - Financial Markets and the Macroeconomy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012548230