Alexander, William P.; Grimshaw, Scott D.; McQueen, Grant R. - In: Real Estate Economics 30 (2002) 4, pp. 667-697
We show how agency problems between lenders (principals) and third-party originators (TPO; agents) imply that TPO-originated loans are more likely to default than similar retail-originated loans. The nature of the agency problem is that TPOs are compensated for writing loans, but are not...