1. Competition and Crisis in Mortgage Securitization.
- Author
-
SIMKOVIC, MICHAEL
- Subjects
- *
ECONOMIC competition , *MORTGAGE-backed securities -- Law & legislation , *SECURITIES underwriting , *GOVERNMENT business enterprises , *RATE of return , *GOVERNMENT agencies - Abstract
The article focuses on the U.S. market competition and the failure of competitive mortgage securitization. It depicts that securitizers has more buyer power and they monitor mortgage originators and maintain prudent underwriting. It emphasizes the merger of government sponsored enterprises (GSEs) with various government agencies to form single dedicated mortgage securitization agency for providing a long-term investment return, improving underwriting, and maintaining market stability.
- Published
- 2013