We evaluate if lenders price or securitise mortgages to mitigate credit risk. Exploiting exogenous variation in regional credit risk created by differences in foreclosure law along US state borders, we find that financial institutions respond to the law in heterogeneous ways. In the agency market where Government Sponsored Enterprises (GSEs) provide implicit loan guarantees, lenders transfer credit risk using securitisation and do not price credit risk into mortgage contracts. In the non-agency market, where there is no such guarantee, lenders increase interest rates as they are unable to shift credit risk to loan purchasers. The results inform the debate about the design of loan guarantees, the common interest rate policy, and show that underpricing regional credit risk leads to an increase in the GSEs' debt holdings by $79.5 billion per annum, exposing taxpayers to preventable losses in the housing market.
We evaluate if lenders price or securitise mortgages to mitigate credit risk. Exploiting exogenous variation in regional credit risk created by differences in foreclosure law along US state borders, we find that financial institutions respond to the law in heterogeneous ways. In the agency market where Government Sponsored Enterprises (GSEs) provide implicit loan guarantees, lenders transfer credit risk using securitisation and do not price credit risk into mortgage contracts. In the non-agency market, where there is no such guarantee, lenders increase interest rates as they are unable to shift credit risk to loan purchasers. The results inform the debate about the design of loan guarantees, the common interest rate policy, and show that underpricing regional credit risk leads to an increase in the GSEs' debt holdings by $79.5 billion per annum, exposing taxpayers to preventable losses in the housing market. ; This Draft: August 31, 2020
We evaluate if lenders price or securitize mortgages to mitigate credit risk. Exploiting exogenous variation in regional credit risk created by differences in foreclosure law along US state borders, we find that financial institutions respond to the law in heterogeneous ways. In the agency market where Government Sponsored Enterprises (GSEs) provide implicit loan guarantees, lenders transfer credit risk using securitization and do not price credit risk into mortgage contracts. In the non-agency market, where there is no such guarantee, lenders increase interest rates as they are unable to shift credit risk to loan purchasers. The results inform the debate about the design of loan guarantees, the common interest rate policy, and show that underpricing regional credit risk leads to an increase in the GSEs' debt holdings by $79.5 billion per annum, exposing taxpayers to preventable losses in the housing market.
International audience ; Located in the heart of the vast Red River Delta, the province of Hanoi in Vietnam is characterized by a strong presence of bodies of water in many forms such as rivers, backwaters, lakes, ponds, reservoirs, canals, and ditches. Undoubtedly water has always been an essential part of traditional landscapes and remains a fundamental challenge. In recent decades, the introduction of policies aimed at developing or modernising the urban and periurban areas of the capital has impacted these waterscapes, the forms of development that can be found there and the associated social practices. Very recently, a new type of waterscape has emerged which is referred to as Ao Môi Trường or "pond of the environment". These ponds have been developed to improve the living environment of periurban villages and to combat flooding and fire hazards; and symbolic and emotional values are also attached to some of them. Their establishment followed the implementation at a local level from 2010 of a national policy referred to as Nông Thôn Mới (New Rurality) decided by the Vietnamese State authorities. The objective was to modernise old villages in rural areas. The development of these "ponds of the environment" can be considered as a paradox given the excessive urban development that has transformed or is in the process of transforming into building land many waterscapes in the capital's region. ; Située au cœur de l'immense delta du fleuve Rouge, la province de Hanoï au Viet-Nam se caractérise par une forte présence d'étendues d'eau sous de multiples formes (cours d'eau, bras-morts, lacs, étangs, bassins, canaux, fossés, etc.). Il est incontestable que l'eau a été une composante essentielle des paysages traditionnels et constitue aujourd'hui encore un enjeu fondamental. Ces dernières décennies, la mise en place de politiques visant à développer ou à moderniser les territoires urbains et périurbains de la région-capitale a eu pour conséquence de faire évoluer ces paysages de l'eau, les formes d'aménagement que ...
International audience ; Located in the heart of the vast Red River Delta, the province of Hanoi in Vietnam is characterized by a strong presence of bodies of water in many forms such as rivers, backwaters, lakes, ponds, reservoirs, canals, and ditches. Undoubtedly water has always been an essential part of traditional landscapes and remains a fundamental challenge. In recent decades, the introduction of policies aimed at developing or modernising the urban and periurban areas of the capital has impacted these waterscapes, the forms of development that can be found there and the associated social practices. Very recently, a new type of waterscape has emerged which is referred to as Ao Môi Trường or "pond of the environment". These ponds have been developed to improve the living environment of periurban villages and to combat flooding and fire hazards; and symbolic and emotional values are also attached to some of them. Their establishment followed the implementation at a local level from 2010 of a national policy referred to as Nông Thôn Mới (New Rurality) decided by the Vietnamese State authorities. The objective was to modernise old villages in rural areas. The development of these "ponds of the environment" can be considered as a paradox given the excessive urban development that has transformed or is in the process of transforming into building land many waterscapes in the capital's region. ; Située au cœur de l'immense delta du fleuve Rouge, la province de Hanoï au Viet-Nam se caractérise par une forte présence d'étendues d'eau sous de multiples formes (cours d'eau, bras-morts, lacs, étangs, bassins, canaux, fossés, etc.). Il est incontestable que l'eau a été une composante essentielle des paysages traditionnels et constitue aujourd'hui encore un enjeu fondamental. Ces dernières décennies, la mise en place de politiques visant à développer ou à moderniser les territoires urbains et périurbains de la région-capitale a eu pour conséquence de faire évoluer ces paysages de l'eau, les formes d'aménagement que l'on y rencontre et les pratiques sociales associées. Tout récemment, un nouveau type d'étendue d'eau est apparu : Ao Môi Trường (étang de l'environnement). Il s'agit d'un plan d'eau (ré)aménagé à la fois pour servir à l'amélioration du cadre de vie des villages périurbains et pour lutter contre des risques d'inondation et d'incendie. S'attachent aussi à certains de ces « étangs » des valeurs symboliques et affectives. La mise en place de ces étangs renvoie à l'application locale, à partir de 2010, d'une politique nationale dite Nông Thôn Mới (Nouvelle Ruralité) décidée par l'État vietnamien. L'objectif visé était de faire accéder à la modernité les anciens villages ruraux. L'aménagement de ces « étangs de l'environnement » peut être considéré comme paradoxal dans le contexte d'un développement urbain démesuré qui a transformé (ou est en train de transformer) en terre constructible un grand nombre d'étendues d'eau dans la région-capitale.
International audience ; Located in the heart of the vast Red River Delta, the province of Hanoi in Vietnam is characterized by a strong presence of bodies of water in many forms such as rivers, backwaters, lakes, ponds, reservoirs, canals, and ditches. Undoubtedly water has always been an essential part of traditional landscapes and remains a fundamental challenge. In recent decades, the introduction of policies aimed at developing or modernising the urban and periurban areas of the capital has impacted these waterscapes, the forms of development that can be found there and the associated social practices. Very recently, a new type of waterscape has emerged which is referred to as Ao Môi Trường or "pond of the environment". These ponds have been developed to improve the living environment of periurban villages and to combat flooding and fire hazards; and symbolic and emotional values are also attached to some of them. Their establishment followed the implementation at a local level from 2010 of a national policy referred to as Nông Thôn Mới (New Rurality) decided by the Vietnamese State authorities. The objective was to modernise old villages in rural areas. The development of these "ponds of the environment" can be considered as a paradox given the excessive urban development that has transformed or is in the process of transforming into building land many waterscapes in the capital's region. ; Située au cœur de l'immense delta du fleuve Rouge, la province de Hanoï au Viet-Nam se caractérise par une forte présence d'étendues d'eau sous de multiples formes (cours d'eau, bras-morts, lacs, étangs, bassins, canaux, fossés, etc.). Il est incontestable que l'eau a été une composante essentielle des paysages traditionnels et constitue aujourd'hui encore un enjeu fondamental. Ces dernières décennies, la mise en place de politiques visant à développer ou à moderniser les territoires urbains et périurbains de la région-capitale a eu pour conséquence de faire évoluer ces paysages de l'eau, les formes d'aménagement que ...
