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Mortgage Securitization and Shadow Bank Lending

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dc.contributor.authorGete, Pedro
dc.contributor.authorReher, Michael
dc.contributor.editorGoldstein, Itay
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-11-06T17:10:08Z
dc.date.available2024-11-06T17:10:08Z
dc.date.issued2021-05
dc.description.abstractWe show how securitization affects the size of the nonbank lending sector through a novel price-based channel. We identify the channel using a regulatory spillover shock to the cross-section of mortgage-backed security prices: the U.S. liquidity coverage ratio. The shock increases secondary market prices for FHA-insured loans by granting them favorable regulatory status once securitized. Higher prices lower nonbanks’ funding costs, prompting them to loosen lending standards and originate more FHA-insured loans. This channel accounts for 22% of nonbanks’ growth in overall mortgage market share over 2013–2015. While the shock creates risks for financial stability, homeownership also increases.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationGete, P., & Reher, M. (2021). Mortgage securitization and shadow bank lending. The Review of Financial Studies, 34(5), 2236-2274. https://doi.org/10.1093/rfs/hhaa088.
dc.identifier.doihttps://doi.org/10.1093/rfs/hhaa088
dc.identifier.issn1465-7368
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3308
dc.issue.number5
dc.journal.titleThe Review of Financial Studies
dc.language.isoen
dc.page.final2274
dc.page.initial2236
dc.page.total38
dc.publisherOxford University Press
dc.relation.departmentFinance
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject.keywordLending Standards
dc.subject.keywordLCR
dc.subject.keywordLiquidity
dc.subject.keywordMortgages
dc.subject.keywordNonbanks
dc.subject.keywordFHA
dc.subject.keywordMBS
dc.titleMortgage Securitization and Shadow Bank Lending
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number34
dspace.entity.typePublication
relation.isAuthorOfPublication627e06b8-d61f-4611-96fe-15cf32670e9f
relation.isAuthorOfPublication.latestForDiscovery627e06b8-d61f-4611-96fe-15cf32670e9f
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