Financial regulation and securitization: Evidence from subprime loans

Journal of Monetary Economics

Volumn 56, Issue 5, 2009, Pages 700-720

  Keys, Benjamin J ^a   Mukherjee, Tanmoy ^b   Seru, Amit ^c   Vig, Vikrant ^d  

^a UNIVERSITY OF MICHIGAN   (United States)

^b Sorin Capital Management ^*  (United States)

^c UNIVERSITY OF CHICAGO   (United States)

^d LONDON BUSINESS SCHOOL   (United Kingdom)

Author keywords

Defaults; Disintermediation; Incentives; Mortgages; Regulation; Screening; Securitization; Subprime; Subprime crisis

Indexed keywords

EID: 67651220688     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2009.04.005     Document Type: Article

References (29)

1. Avery R., Bostic R., Calem P., and Canner G. Credit risk, credit scoring and the performance of home mortgages. Federal Reserve Bulletin 82 (1996) 621-648 The Effect of Legal Enforcement Mechanics, Working Paper.
2. Bebchuk, L., Cremers, M., Peyer, U., 2008. CEO Centrality, Harvard Law School Olin Discussion Paper.
3. Calomiris C.W. U.S. Bank Deregulation in Historical Perspective (2000), Cambridge University Press, Cambridge
4. Calomoris C., and Kahn C. The role of demandable debt in structuring optimal banking arrangements. The American Economic Review 81 (1991) 497-513
5. Chomsisengphet S., and Pennington-Cross A. The evolution of the subprime mortgage market. Federal Reserve Bank of St. Louis Review 88 1 (2006) 31-56
6. Dell'Ariccia, G., Deniz, I., Laeven, L., 2008. Credit booms and lending standards: evidence from the subprime mortgage market, Working Paper.
7. Diamond D., and Dybvig P. Bank runs, deposit insurance, and liquidity. Journal of Political Economy 91 (1983) 401-419
8. Diamond D., and Rajan R. Liquidity risk, liquidity creation and financial fragility: a theory of banking. Journal of Political Economy 109 (2001) 287-327
9. DiNardo J., and Lee D.S. Economic impacts of new unionization on private sector employers: 1984-2001. Quarterly Journal of Economics 119 (2004) 1383-1441
10. Fishelson-Holstein H. Credit scoring role in increasing homeownership for underserved populations. In: Retsinas, and Belsky (Eds). Building Assets Building Credit: Creating Wealth in Low-Income Communities (2005), Brookings Institution Press, Washington, D.C.
11. Gibbons R., and Murphy K.J. Relative performance evaluation for chief executive officers. Industrial and Labor Relations Review 43 (1990) 30-51
12. Gorton, G.B., Souleles, N.S., 2005. Special purpose vehicles and securitization, FRB Philadelphia Working Paper 05-21.
13. Gramlich E. Subprime Mortgages: America's Latest Boom and Bust (2007), The Urban Institute Press, Washington, D.C.
14. Holloway, T., MacDonald, G., Straka, J., 1993. Credit scores, early-payment mortgage defaults, and mortgage loan performance, Freddie Mac Working Paper.
15. Keys, B., Mukherjee, T., Seru, A., Vig, V., 2009. Did securitization lead to lax screening: evidence from subprime loans, Working Paper.
16. Kleiner, M.M., Todd, R.M., 2007. Mortgage broker regulations that matter: analyzing earnings, employment, and outcomes for consumers, NBER Working Paper no. 13684, December 〈http://www.nber.org/papers/w13684〉.
17. Loutskina, E., Strahan, P., 2007. Securitization and the declining impact of bank finance on loan supply: evidence from mortgage acceptance rates, Working Paper.
18. Loutskina, E., Strahan, P., 2008. Informed and uninformed investment in housing: the downside of diversification, Working Paper.
19. Mian, A., Sufi, A., 2008. The consequences of mortgage credit expansion: evidence from the 2007 mortgage default crisis, Working Paper.
20. Pahl, C., 2007. A compilation of state mortgage broker laws and regulations, 1996-2006, Federal Reserve Bank of Minneapolis, Community Affairs Report.
21. Purnanandam, A.K., 2008. Originate-to-distribute model and the sub-prime mortgage crisis, Working Paper, SSRN.
22. Rajan R. A View of the Liquidity Crisis (2008), University of Chicago, Mimeo
23. Rajan, U., Seru, A., Vig, V., 2008. The failure of models that predict failure: distance, incentives and defaults, Working Paper.
24. Stein J. Information production and capital allocation: decentralized versus hierarchical firms. Journal of Finance 57 5 (2002) 1891-1921
25. Stein, J., 2008. Panel discussion on subprime crisis. In: NBER Spring 2008 Corporate Finance Meetings.
26. Thakor A. Capital requirement, monetary policy, and aggregate bank lending: theory and empirical evidence. Journal of Finance 51 1 (1996) 279-324
27. Treasury Blueprint, 2008. The Department of the treasury blueprint for a modernized financial regulatory structure, March 2008.
28. Van den Heuvel S. The welfare cost of bank capital requirements. Journal of Monetary Economics 55 2 (2008) 298-320
29. Vickery, J., 2007. How do financial frictions shape the product market? Evidence from mortgage originations, Working Paper.