Concentration in Mortgage Markets: Government Sponsored Enterprise Exposure and Risk-Taking in Uncertain Times

• 成果类型: Article; Early Access
• 署名作者: Elul, Ronel; Gupta, Deeksha; Musto, David
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; Johns Hopkins University; University of Pennsylvania
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2024.05912
• 发表日期: 2025
• 关键词: GSEs; Concentration; risk exposure

摘要

When home prices threaten to decline, large mortgage investors can benefit from fostering new lending that boosts demand. We ask whether this benefit contributed to the growth in acquisitions of risky mortgages by the Government Sponsored Enterprises (GSEs) in the first half of 2007. We find that it helps explain the variation of this growth across regions, as well as regional house price and credit changes. The growth predicted by this benefit is on top of the acquisition growth caused by the exit of private-label securitizers. We conclude that the GSEs actively targeted their acquisitions to counter home-price declines.