RT Journal Article
SR Electronic
T1 Mortgage Lender Profitability and Its Impacton Market Spreads
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 69
OP 76
DO 10.3905/jsf.2016.22.1.069
VO 22
IS 1
A1 Michael Fratantoni
YR 2016
UL https://pm-research.com/content/22/1/69.abstract
AB Persistent increases in mortgage origination costs affect both lender profitability and borrower costs. This article examines these trends and quantifies the impact of increased loan production expenses on primary–secondary spreads. An important implication for investors and analysts is that persistently wider spreads may dampen prepayment responses for a given change in secondary market rates relative to historical experience.TOPICS: MBS and residential mortgage loans, financial crises and financial market history