The Effect of Securitization on Primary Market Mortgage Yields

Posted: 25 Jun 1998

See all articles by Andrea J. Heuson

Andrea J. Heuson

University of Miami - Department of Finance

Dennis Lasser

State University of New York (SUNY) at Binghamton - School of Management

Date Written: Undated

Abstract

Empirical tests of the model on data from U.S. financial markets from 1977 to 1993 show that increases in the percentage of originated mortgage loans that are securitized lead to concomitant declines in mortgage yields. This conclusion is robust to changes in the empirical specification. Econometric results include all of the traditional control variables used in previous research. Results also show that the mortgage interest savings that has accrued to individual borrowers since the data began exceeds 20 billion dollars.

JEL Classification: G21

Suggested Citation

Heuson, Andrea J. and Lasser, Dennis, The Effect of Securitization on Primary Market Mortgage Yields (Undated). Available at SSRN: https://ssrn.com/abstract=9067

Andrea J. Heuson (Contact Author)

University of Miami - Department of Finance ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States
305-284-4362 (Phone)
305-284-4800 (Fax)

Dennis Lasser

State University of New York (SUNY) at Binghamton - School of Management ( email )

Vestal Parkway East
Binghamton, NY 13902-6015
United States
607-777-4874 (Phone)

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