amit seru::Evidence from subprime loans benjamin j amit seru

amit seru::Evidence from subprime loans benjamin j.
Keys , federal reserve board tanmoy k.
Mukherjee amit seru , university of chicago vikrant vig , london business school a central question surrounding the current subprime crisis is whether the securitization process reduced the incentives of financial intermediaries to carefully screen borrowers.
We empirically examine this issue using a unique dataset on securitized subprime mortgage loan contracts in the united states.
We conduct additional analyses to rule out selection on the part of borrowers, lenders, or investors as alternative explanations.
Our findings suggest that existing securitization practices did adversely affect the screening incentives of lenders.