. Recent research has used variation induced by these rules to investigate the connection between securitization and lender … moral hazard problem posed by securitization. …

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 … that securitization caused lax screening. We examine loan-level data and find that the evidence is inconsistent with the …

securitization process. This paper examines whether "cream-skimming" behavior was common practice in the subprime mortgage … securitization market prior to its collapse in 2007. Using Home Mortgage Disclosure Act data merged with data on subprime loan …