| Autor: |
Patrick S. Smith, Anurag Mehrotra, Adam Nowak |
| Rok vydání: |
2021 |
| Předmět: |
|
| Zdroj: |
SSRN Electronic Journal. |
| ISSN: |
1556-5068 |
| Popis: |
We study the effect of securitization on servicers' asset liquidation decisions. Conditional on liquidation, we find houses financed by loans in private label securities were more likely to be liquidated via real estate owned (REO) transactions than houses financed by portfolio loans. We exploit this fundamental relationship in an instrumental variables specification to show each house liquidated via an REO instead of a short sale resulted in an additional 0.19 homeowner defaults within a 0.10-mile radius. Our findings provide new evidence of principal-agent conflicts introduced by securitization while highlighting their second-order effects on nearby default behavior and the real economy. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
|
