This paper studies how United States (US) policy actions impacted mortgage-backed securities (MBS) investors and … mortgage borrowers during the subprime mortgage crisis of 2007 to 2010. The effects of the following policy actions on MBS … spreads and mortgage lending spreads are studied: (i) US Government conservatorship of Fannie Mae and Freddie Mac; (ii) US …

amount depend on mortgage rate negatively, consistent with a prepayment-driven demand channel. This negative dependence …

mortgage contract designs that more directly pass through interest rate declines to borrowers can reduce racial mortgage …

) quantitative easing (QE) announcements on the mortgage market during the zero lower bound (ZLB) period. A total of 35 QE …-year mortgage rate, the 30-year Treasury rate and the spread between them. Announcements suggesting the start of a new … round of QE reduced the mortgage rate tremendously, while the effects of further news diminished. Announcements of an …

lending guidelines, and demand in housing construction and mortgage lending has plummeted. Against this background, the paper …