. Recent research has used variation induced by these rules to investigate the connection between securitization and lender … perapplicant fixed costs in screening. We then demonstrate that our theory fits the data better than the main alternative theory … already in the literature, which supposes cutoff rules are exogenously used by securitizers. Furthermore, we use our theory to …

research has hypothesized that these cutoff rules result from a securitization rule of thumb. Under this theory, an observed … securitization rule-of-thumb theory but consistent with the origination rule-of-thumb theory. There are jumps in the number of loans … jump in defaults at the cutoff would imply that securitization led to lax screening. We argue instead that originators …