willingness of originators to initiate loans. Since the supply of loanable funds is larger, mortgage rates are lower than would … mortgages to the GSEs, they ignored adverse selection problems.Buyers of GSE debt, trusting in the implicit government guarantee …, ignored the moral hazard associated GSE policy. Given that both originators and the ultimate funders faced little of the …

strategically as their home value falls below the mortgage value (exercise the put option to default on their first mortgage). While … current but stand behind a seriously delinquent first mortgage, are subject to a high risk of default. On the other hand … that the various mortgage loss mitigation programs also play a role in providing incentives for homeowners to default on …

guarantee and the potential high cost for mortgage holders or the government. In addition to the creation of an explicit … adoption of mortgages—such as the “Fixed-COFI” mortgage—that build homeowner equity faster than the thirty-year fixed …-rate mortgage favored by the GSEs. With such mortgages, homeowners are better able to weather economic downturns …

mortgage rates. The Federal Reserve's accumulation of MBS and Treasury securities lowered MBS yields and mortgage rates by more …We conduct an empirical analysis of the Federal Reserve's large-scale asset purchases (LSAPs) on MBS yields and … Reserve must hold a substantial market share of agency MBS or of Treasury securities to significantly lower MBS yields and in …

research for the U.S. home mortgage market suggests that securitization itself may not have been a problem, but rather the …

emphasis on the US mortgage markets, as they were the epicenter of this crisis. We synthesize the insights the literature …