Did Securitization Lead to Lax Screening ? Evidence From Subprime Loans 2001-2006 ∗

By Benjamin J. Keys, Tanmoy Mukherjee, Amit Seru, Vikrant Vig. 2008

918 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/96c62c5ed16294408843a151895cd1e98a09ff7d

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Citations in the corpus

Bank Bias in Europe: Effects on Systemic Risk and Growth (2015, background): “Securitization has gained a bad reputation from securities based on US sub-prime mortgages, which collapsed in value over 2007 and 2008 as risks had been systematically underestimated (Keys et al., 2010). European ABS markets have not recovered since 2008 (Altomonte and Bussoli, 2014; Nassr and Wehi”
Who Facilitated Misreporting in Securitized Loans (2016, background): “…Keys et al. (2010): low/no documentation loans whose associated credit score is slightly over 620 are significantly more likely to be securitized.10 Keys et al. (2010) focus 10 Full documentation loans whose associated credit score is slightly over 580 are also significantly more likely to be…”
E¢ cient Recapitalization (2010, neutral): “Lamont (1995) analyzes the importance of macroeconomic expectations in an economy where rms may su¤er from debt overhang.”
Mortgage Market Design (2012, background): “Keys et al. (2010, 2012) present evidence that securitized mortgages were poorly underwritten in the mid-2000s.”
'Effortless Perfection:' Do Chinese Cities Manipulate Air Pollution Data? (2014, result): “Similar to our first approach, Keys et al. (2010) test for discontinuities in FICO scores around these thresholds, which they find and interpret as suggestive evidence of manipulation. Another potential field of application is education. The literature on gaming in the school system as a result of h”
Liquidity Risk Management and Credit Supply in the Financial Crisis (2011, neutral): “12 uninsured depositors require higher interest rates at riskier banks and Maechler and McDill (2006) suggest uninsured depositors may not supply liquidity to weak banks at any price.”
Liquidity and the Threat of Fraudulent Assets (2011, background): “…traded daily without extensive due diligence.1 These securitized bonds were subject to moral hazard problems, fraudulent practices, and lax incentives ðKeys et al. 2010; Barnett 2012Þ.2 In this paper we develop a theory of asset liquidity—the extent to which an asset can facilitate exchange as…”
Housing Price Booms and Crowding-Out Effects in Bank Lending (2018, background): “Indeed, empirically, Keys et al. (2010) find that securitization practices adversely affected the screening incentives of lenders.”
Securitization and Distressed Loan Renegotiation: Evidence from the Subprime Mortgage Crisis (2010, neutral): “…we contribute to the literature that debates the costs and benefits of securitization (Dell’Ariccia et al., 2008; Demyanyk and Van Hemert, 2009; Keys et al., 2010, 2009; Rajan et al., 2008; Loutskina, 2006; Loutskina and Strahan, 2007; Mian and Sufi, 2009; Morrison, 2005; and Parlour and…”