An aerial view of a suburban neighborhood.

Working Paper

Concentration in Mortgage Markets: GSE Exposure and Risk-Taking in Uncertain Times

Ronel Elul,
Deeksha Gupta &
David K. Musto

Revised: January 2022

WP 20-04/R (Superseded by WP 25-12).

This paper was superseded by Concentration in Mortgage Markets: GSE Exposure and Risk-Taking in Uncertain Times.

Is It Risky for the Government to Double Down on Its Investment in Mortgage Markets Just When a Boom Is Ending?

Research in Focus — When housing markets threaten to fall, two government-sponsored entities are shown to invest opportunistically, aiming to support their own mortgage portfolios.

Research in Focus

Mortgage Markets

Working Paper

The Role of Government and Private Institutions in Credit Cycles in the U.S. Mortgage Market

Manuel Adelino,
W. Ben McCartney &
Antoinette Schoar

October 2020

WP 20-40 - The distribution of combined loan-to-value ratios (CLTVs) for purchase mortgages has been remarkably stable in the U.S. over the last 25 years. But the source of high-CLTV loans changed during the housing boom of the 2000s, with private securitization replacing FHA and VA loans directly guaranteed by the government.

Banking and Financial Markets

Working Paper

Securitization and Mortgage Default

Ronel Elul

March 2015

WP 15-15 — We find that private-securitized loans perform worse than observably similar, nonsecuritized loans, which provides evidence for adverse selection.