Private information in the mortgage market: evidence and a theory of crises

The securitization boom in the United States mortgage market from 2000 to 2005 was enormous (figure 1). According to the Securities Industry and Financial Markets Association (SIFMA) new issuance of securities backed by mortgages that were not insured by the U.S. government rose by a factor of twelv...

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Autor principal:	Shimer, Robert L.
Formato:	Artículo
Lenguaje:	eng
Publicado:	Banco Central de Chile 2019
Materias:	PRÉSTAMOS HIPOTECARIOS INDUSTRIA DE VALORES MERCADO FINANCIERO
Acceso en línea:	https://hdl.handle.net/20.500.12580/3803
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spelling	oai-20.500.12580-38032021-04-24T11:08:00Z Private information in the mortgage market: evidence and a theory of crises Shimer, Robert L. PRÉSTAMOS HIPOTECARIOS INDUSTRIA DE VALORES MERCADO FINANCIERO The securitization boom in the United States mortgage market from 2000 to 2005 was enormous (figure 1). According to the Securities Industry and Financial Markets Association (SIFMA) new issuance of securities backed by mortgages that were not insured by the U.S. government rose by a factor of twelve during that five year period from $58 billion in 2000 to $726 billion in 2005. Issuance of securities backed by home equity loans also soared from $75 billion to $460 billion over the same five year span. The subsequent collapse was even faster. By 2008 issuance of these two types of securities had fallen to $36 billion further declining to $8 billion by 2012. In contrast the market for securities backed by insured mortgages has boomed since 2005 nearly doubling from $983 billion to $1.731 trillion by 2012 in the face of declining interest rates. This paper summarizes existing empirical evidence that private information was important in the uninsured mortgage market and then describes recent theoretical models that explain how the emergence of private information can lead to a decline in trade in these securities. 2019-11-01T00:06:33Z 2019-11-01T00:06:33Z 2014 Artículo 978-956-7421-45-9 https://hdl.handle.net/20.500.12580/3803 eng Series on Central Banking Analysis and Economic Policies no. 19 Attribution-NonCommercial-NoDerivs 3.0 Chile http://creativecommons.org/licenses/by-nc-nd/3.0/cl/ .pdf Sección o Parte de un Documento p. 117-150 application/pdf ESTADOS UNIDOS Banco Central de Chile
institution	Banco Central
collection	Banco Central
language	eng
topic	PRÉSTAMOS HIPOTECARIOS INDUSTRIA DE VALORES MERCADO FINANCIERO
spellingShingle	PRÉSTAMOS HIPOTECARIOS INDUSTRIA DE VALORES MERCADO FINANCIERO Shimer, Robert L. Private information in the mortgage market: evidence and a theory of crises
description	The securitization boom in the United States mortgage market from 2000 to 2005 was enormous (figure 1). According to the Securities Industry and Financial Markets Association (SIFMA) new issuance of securities backed by mortgages that were not insured by the U.S. government rose by a factor of twelve during that five year period from $58 billion in 2000 to $726 billion in 2005. Issuance of securities backed by home equity loans also soared from $75 billion to $460 billion over the same five year span. The subsequent collapse was even faster. By 2008 issuance of these two types of securities had fallen to $36 billion further declining to $8 billion by 2012. In contrast the market for securities backed by insured mortgages has boomed since 2005 nearly doubling from $983 billion to $1.731 trillion by 2012 in the face of declining interest rates. This paper summarizes existing empirical evidence that private information was important in the uninsured mortgage market and then describes recent theoretical models that explain how the emergence of private information can lead to a decline in trade in these securities.
format	Artículo
author	Shimer, Robert L.
author_facet	Shimer, Robert L.
author_sort	Shimer, Robert L.
title	Private information in the mortgage market: evidence and a theory of crises
title_short	Private information in the mortgage market: evidence and a theory of crises
title_full	Private information in the mortgage market: evidence and a theory of crises
title_fullStr	Private information in the mortgage market: evidence and a theory of crises
title_full_unstemmed	Private information in the mortgage market: evidence and a theory of crises
title_sort	private information in the mortgage market: evidence and a theory of crises
publisher	Banco Central de Chile
publishDate	2019
url	https://hdl.handle.net/20.500.12580/3803
work_keys_str_mv	AT shimerrobertl privateinformationinthemortgagemarketevidenceandatheoryofcrises
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Private information in the mortgage market: evidence and a theory of crises

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