Originate-to-Distribute Model and the Subprime Mortgage Crisis

By Amiyatosh Purnanandam. 2011

542 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/4c1bc6fc7d81274fb15ced12d93eb991d465a5ce

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Citations in the corpus

Who Facilitated Misreporting in Securitized Loans (2016, background): “…the extremely poor loan performance include a decrease in loan quality (Demyanyk and Van Hemert 2011) or a decrease in housing prices (Mayer, Pence, and Sherlund 2009), and poor incentives tied to the “originate-to-distribute” model (Keys et al. 2010; Purnanandam 2011; Keys, Seru, and Vig 2012).”
Bank Capital and Financial Stability: An Economic Trade-Off or a Faustian Bargain? (2014, background): “Bhattacharyya & Purnanandam (2011) document that many banks had compensation plans tied to their short-term earnings and that these banks had substantially increased their systematic risk before the crisis.”
The Role of Securitization in Bank Liquidity and Funding Management (2011, background): “A number of recent studies tied securitization to excessive credit supply (Mian and Sufi (2008), Demyanyk and Van Hermert (2008), Keys, Mukherjee, Seru and Vig (2008), Loutskina and Strahan (2009), and Rajan, Seru and Vig (2009)); lack of ex-post monitoring incentives (Piskorski, Seru and Vig (2009)”
The impact of securitization on the expansion of subprime credit (2013, unknown): “their results by identifying the causal influence of the securitization channel, specifically on lending supply. This work also further contributes to the literature by investigating the specific mechanisms by which securitization might influence lending supply, by either lowering lenders’ cost of c”
Asset Quality Misrepresentation by Financial Intermediaries: Evidence from the RMBS Market: Asset Quality Misrepresentation by Financial Intermediaries (2015, unknown): “…and Sandas (2010), Mian and Sufi (2011), Agarwal et al. (2011), Demyanyk and Van Hemert (2011), Stanton and Wallace (2011), Demiroglu and James (2012), Nadauld and Sherlund (2013), Purnanandam (2011), Acharya, Schnabl, and Suarez (2013), He, Qian, and Strahan (2013), and Mayer et al. (2014).”
The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, unknown): “Purnanandam (2011) documents that a onestandard-deviation increase in a bank’s propensity to sell off its loans increases the default rate by about 0.45 percentage points, representing an overall increase of 32%.”
Asymmetric Information, Adverse Selection, and the Pricing of CMBS (2011, background): “Those concerns have been cited among flaws of the originate-to-distribute model (see, for example, Bernanke, 2008; Mishkin, 2008; European Central Bank, 2008; Ashcraft and Schuermann, 2008; Keys, Mukherjee, Seru, and Vig, 2010; Purnanandam, 2009).”
Advertising Expensive Mortgages (2016, background): “…2010), Mayer and Pence (2009), Mian and Sufi (2009), Agarwal et al. (2011), Ben-David (2011), Loutskina and Strahan (2011), Mayer et al. (2014), Purnanandam (2011), Jiang, Nelson, and Vytlacil (2012), Chernenko, Hanson, and Sunderam (2013), Nadauld and Sherlund (2013), Stroebel (2016)), and in…”
Fintech, regulatory arbitrage, and the rise of shadow banks (2018, unknown): “Many papers have studied the changing structure of the mortgage origination chain, with particular attention paid to the originate-to-distribute model and the costs and benefits thereof (e.g., Berndt and Gupta 2009, Piskorski et al. 2010, Keys et al. 2010 and 2013, Purnanandam 2011).”
Informed and Uninformed Investment in Housing: The Downside of Diversification (2011, background): “Purnanandam (2008) exploits the 2007 liquidity pullback to show that banks intending to sell their originations faced larger losses than those intending to hold them when it became”