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In this paper we identify the relationship of the pricing of residential mortgage lending products to their market … nontraditional mortgage products on house price declines during the crisis into impact due to their pricing and due to other … characteristics. Using alternative measures of mortgage pricing, we document that pricing has a statistically significant but small …
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Introduction: In praise of homeownership -- Housing finance before the New Deal -- The New Deal mortgage -- The rise of … definitive account, Adam Levitin and Susan Wachter pinpoint its source: the shift in mortgage financing from securitization by … in mortgage underwriting standards, as banks competed in laxity to gain market share. The Great American Housing Bubble …
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In this paper we offer direct evidence that financial intermediation does impact underlying asset markets. We develop a specific observable symptom of a banking system that underprices the put option imbedded in non-recourse asset-backed lending. Using a dataset for 19 countries and over 500...
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