Mortgage Securitization and Shadow Bank Lending

We 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 p...

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Detalles Bibliográficos
Autores: Gete, Pedro, Reher, Michael
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:IE
Repositorio:Repositorio IE
OAI Identifier:oai:repositorio.ie.edu:20.500.14417/3308
Acceso en línea:https://doi.org/10.1093/rfs/hhaa088
https://hdl.handle.net/20.500.14417/3308
Access Level:acceso abierto
Palabra clave:Lending Standards
LCR
Liquidity
Mortgages
Nonbanks
FHA
MBS
53 Ciencias Económicas::5304 Actividad económica::5304.05 Seguros
ODS 1 - Fin de la pobreza
ODS 8 - Trabajo decente y crecimiento económico
ODS 10 - Reducción de las desigualdades
ODS 9 - Industria, innovación e infraestructura
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repository_id_str
spelling Mortgage Securitization and Shadow Bank LendingGete, PedroReher, MichaelLending StandardsLCRLiquidityMortgagesNonbanksFHAMBS53 Ciencias Económicas::5304 Actividad económica::5304.05 SegurosODS 1 - Fin de la pobrezaODS 8 - Trabajo decente y crecimiento económicoODS 10 - Reducción de las desigualdadesODS 9 - Industria, innovación e infraestructuraWe 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.yesPublishedOxford University PressGoldstein, Itayhttps://ror.org/02jjdwm75202420242021info:eu-repo/semantics/articleapplication/pdfapplication/pdfhttps://doi.org/10.1093/rfs/hhaa088https://hdl.handle.net/20.500.14417/3308reponame:Repositorio IEinstname:IEInglésIE Business SchoolIE UniversityFinanceAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:repositorio.ie.edu:20.500.14417/33082026-06-15T12:40:57Z
dc.title.none.fl_str_mv Mortgage Securitization and Shadow Bank Lending
title Mortgage Securitization and Shadow Bank Lending
spellingShingle Mortgage Securitization and Shadow Bank Lending
Gete, Pedro
Lending Standards
LCR
Liquidity
Mortgages
Nonbanks
FHA
MBS
53 Ciencias Económicas::5304 Actividad económica::5304.05 Seguros
ODS 1 - Fin de la pobreza
ODS 8 - Trabajo decente y crecimiento económico
ODS 10 - Reducción de las desigualdades
ODS 9 - Industria, innovación e infraestructura
title_short Mortgage Securitization and Shadow Bank Lending
title_full Mortgage Securitization and Shadow Bank Lending
title_fullStr Mortgage Securitization and Shadow Bank Lending
title_full_unstemmed Mortgage Securitization and Shadow Bank Lending
title_sort Mortgage Securitization and Shadow Bank Lending
dc.creator.none.fl_str_mv Gete, Pedro
Reher, Michael
author Gete, Pedro
author_facet Gete, Pedro
Reher, Michael
author_role author
author2 Reher, Michael
author2_role author
dc.contributor.none.fl_str_mv Goldstein, Itay
https://ror.org/02jjdwm75
dc.subject.none.fl_str_mv Lending Standards
LCR
Liquidity
Mortgages
Nonbanks
FHA
MBS
53 Ciencias Económicas::5304 Actividad económica::5304.05 Seguros
ODS 1 - Fin de la pobreza
ODS 8 - Trabajo decente y crecimiento económico
ODS 10 - Reducción de las desigualdades
ODS 9 - Industria, innovación e infraestructura
topic Lending Standards
LCR
Liquidity
Mortgages
Nonbanks
FHA
MBS
53 Ciencias Económicas::5304 Actividad económica::5304.05 Seguros
ODS 1 - Fin de la pobreza
ODS 8 - Trabajo decente y crecimiento económico
ODS 10 - Reducción de las desigualdades
ODS 9 - Industria, innovación e infraestructura
description We 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.
publishDate 2021
dc.date.none.fl_str_mv 2021
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://doi.org/10.1093/rfs/hhaa088
https://hdl.handle.net/20.500.14417/3308
url https://doi.org/10.1093/rfs/hhaa088
https://hdl.handle.net/20.500.14417/3308
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv IE Business School
IE University
Finance
dc.rights.none.fl_str_mv Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Oxford University Press
publisher.none.fl_str_mv Oxford University Press
dc.source.none.fl_str_mv reponame:Repositorio IE
instname:IE
instname_str IE
reponame_str Repositorio IE
collection Repositorio IE
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,811543

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