We study how deposit competition affects a bank’s decision to securitize mortgages. Exploiting the state …-specific removal of deposit market caps across the US as a source of competition, we find a 7.1 percentage point increase in the … probability that banks securitize mortgage loans. This result is driven by an 11 basis point increase in deposit costs and …

We model mortgage refinancing as a bargaining game involving the borrowing household, the incumbent lender, and an … outside bank. In equilibrium, the borrower's ability to refinance depends both on the competitiveness of the local banking … correlated with the number of local branches and negatively correlated with local mortgage market concentration. Moreover …

digital capital can better withstand competition from traditional banks, especially among high-FICO borrowers, non … later in the sample period, suggesting that fintech lenders improve financial inclusion to circumvent direct competition …