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 … Century Financial during 2006. -- Subprime mortgage credit ; securitization ; rating agencies ; principal agent ; moral hazard …

This paper derives a bank capital allocation model and applies it in the determinants of securitization. According to … increase riskier loans to raise capital return, or to decrease loans to alleviate risk.Securitization is one way to alleviate … securitization to maximize utility. To derive a bank capital allocation model, HJB equation in control theory and a specific utility …

This study investigates the impact of securitization on the credit-risk taking behavior of banks. Using US bank holding … relationship between outstanding securitization and risk taking is primarily driven by securitizations of mortgages and home equity … credit-risk taking behavior. We attribute these results to the recourse commonly provided in securitization transactions that …

the balance sheet of the originator, if securitized mortgages cannot be renegotiated. Insofar as securitization inhibits … sheet. Higher loan to value ratios for securitized mortgages do not necessarily constitute evidence that securitization …