Bond, Philip; Leitner, Yaron - Federal Reserve Bank of Philadelphia - 2009
Consider the sale of mortgages by a loan originator to a buyer. As widely noted, such a transaction is subject to a … mortgages. However, a second important feature of this transaction has received much less attention: both the seller and the … buyer may have existing inventories of mortgages similar to those being sold. The authors analyze how the presence of such …