We document the emergence of a disconnect between mortgage and Treasury interest rates in the summer of 2003. Following … the end of the Federal Reserve expansionary cycle in June 2003, mortgage rates failed to rise according to their … historical relationship with Treasury yields, leading to significantly and persistently easier mortgage credit conditions. We …

We study the effects of securitization on renegotiation of distressed residential mortgages over the current financial …% of the U.S. mortgage market. Exploiting within-servicer variation in these data, we find that bank-held loans are 26% to … 36% more likely to be renegotiated than comparable securitized mortgages (4.2 to 5.7% in absolute terms). Also …

The meltdown in residential real-estate prices that commenced in 2006 resulted in unprecedented mortgage delinquency … show that the majority of delinquent mortgages do not enter any loss mitigation program or become a part of foreclosure … by differences in borrower population. Consistent with the idea that securitization induces agency conflicts, we confirm …

eine Finanzkrise entwickelt und ausgebreitet. Im vorliegenden Beitrag werden einige begünstigende Faktoren und Produkte …Starting from sub-prime real estate financing in the U.S., a financial crisis has developed and spread across the world …

We investigate the effect of securitization activity on banks’ lending standards using evidence from pricing behavior … aggressive on their loan pricing practices. This suggests that securitization activity lead to laxer credit standards …. Macroeconomic factors also play a large role explaining the impact of securitization activity on bank lending standards: banks more …

Der ökonomische Mainstream steht seit Ausbruch der Finanzkrise 2007/08 vermehrt unter Kritik, hatten doch nur wenige … getilgt hat. Hätte Karl Marx eine bessere Prognose zur Finanzkrise gestellt? Seine Geld- und Kredittheorie erschließt sich … zeigt sich, dass Marx insbesondere durch seine Analysen zum Kreditgeld die Finanzkrise besser erklären kann als der …

Mortgage originators use credit score cutoff rules to determine how carefully to screen loan applicants. Recent … research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed … jump in defaults at the cutoff would imply that securitization led to lax screening. We argue instead that originators …

done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on a mortgage and … illustrate that unaffordable loans, defined as those with high mortgage payments relative to income at origination, are unlikely … for the low number of modifications to date than contract frictions related to securitization agreements between servicers …

research for the U.S. home mortgage market suggests that securitization itself may not have been a problem, but rather the …The agency conflicts inherent in securitization are viewed by many as having been a key contributor to the recent … origination and distribution of observably riskier loans. Low-documentation mortgages, for which asymmetric information problems …