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Mortgage Pass‐Through Securities: Progress and Prospects
Author(s) -
Seiders David F.
Publication year - 1983
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00291
Subject(s) - securitization , commission , commercial mortgage backed security , private placement , secondary mortgage market , secondary market , finance , business , economics , broker dealer , financial system , financial market , investment banking , mortgage insurance , insurance policy , casualty insurance , stock exchange
This paper discusses the Housing Commission's perspective and recommendations on mortgage pass‐through securities markets, reviews federal policy toward such securities in the wake of the Housing Commission Report , and considers prospects for mortgage securities in the housing finance system of the future. Concerning the outlook, it is concluded that massive “securitization” of housing finance may not be inevitable–contrary to the developing conventional wisdom on this topic–partly because the underlying need for secondary market transactions may not be as strong as commonly expected. Furthermore, the relative importance of pass‐through securities as secondary market vehicles may erode if federally related programs are phased down in line with Housing Commission recommendations, even if policies currently being developed within the Administration to improve the functioning of fully private securities markets are implemented.