1 Introduction and Summary -- 1.1 The Need for a Theory of Production for Financial Firms -- 1.2 Issues in Technology and Regulation -- 1.3 User Cost Derivation -- 1.4 A Model of the Financial Firm -- 1.5 Data and Data Construction -- 1.6 Specification and Hypothesis Testing -- 1.7 Empirical...

On November 25, 2008, the Federal Reserve announced it would purchase mortgage-backed securities (MBS). This program affected mortgage rates through three channels: (1) improved market functioning in both primary and secondary mortgage markets, (2) clearer government backing for Fannie Mae and...

In recent years, the government has greatly extended its reach into the mortgage markets with the goals of (1) mitigating the deadweight losses associated with mortgage foreclosures, (2) promoting affordable homeownership, and (3) providing low cost mortgage financing. In this paper, we identify...