PT  - JOURNAL ARTICLE
AU  - Michael Fratantoni
TI  - Mortgage Lender Profitability and Its Impacton Market Spreads
AID  - 10.3905/jsf.2016.22.1.069
DP  - 2016 Apr 30
TA  - The Journal of Structured Finance
PG  - 69--76
VI  - 22
IP  - 1
4099  - https://pm-research.com/content/22/1/69.short
4100  - https://pm-research.com/content/22/1/69.full
AB  - Persistent increases in mortgage origination costs affect both lender profitability and borrower costs. This article examines these trends and quantifies the impact of increased loan production expenses on primary–secondary spreads. An important implication for investors and analysts is that persistently wider spreads may dampen prepayment responses for a given change in secondary market rates relative to historical experience.TOPICS: MBS and residential mortgage loans, financial crises and financial market history