We study the effects of securitization on renegotiation of distressed residential mortgages over the current financial …-modification default rates by 9% (3.5% in absolute terms). Our findings support the view that frictions introduced by securitization create …

for the low number of modifications to date than contract frictions related to securitization agreements between servicers …

In this paper, we provide an overview of the subprime mortgage securitization process and the seven key informational … predatory borrowing and predatory lending. We present the key structural features of a typical subprime securitization, document …

to securitize that are in line with observable behavior of market participants. US banks use securitization mainly as … and performance improvement. For German banks securitization seems to be an appropriate funding tool. The proposed … regulatory securitization changes like in Basel III are evaluated in this context, but will hit the banks not as hard as expected. …

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 …