Securitization and Loan Performance: A Contrast of Ex Ante and Ex Post Relations in the Mortgage Market
SSRN Electronic Journal
2010
- 40Citations
- 4,912Usage
- 11Captures
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Article Description
This study presents an intriguing contrast of the ex ante and ex post relations between mortgage securitization and loan performance using a comprehensive dataset from a major national mortgage bank. While the paper supports that the bank applies lower screening efforts on loans that have higher ex ante probability of being securitized, it further shows that loans remaining on the bank’s balance sheet are, ex post, of worse quality than sold loans. Most of the differences can be explained away by secondary market investors’ information advantage over the originating bank due to the time lag between loan origination and loan sale. While many blame the presence of the secondary market for the emergence of “liars’ loans,” we find that ironically these loans hurt the originating bank more than it did the secondary market.
Bibliographic Details
http://www.ssrn.com/abstract=1571300; http://dx.doi.org/10.2139/ssrn.1571300; http://www.ssrn.com/abstract=1787119; http://dx.doi.org/10.2139/ssrn.1787119; https://dx.doi.org/10.2139/ssrn.1787119; https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1787119; https://dx.doi.org/10.2139/ssrn.1571300; https://ssrn.com/abstract=1571300; https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1571300; https://ssrn.com/abstract=1787119
Elsevier BV
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