The 2007/2008 global financial crisis: a further reassessment of the originate-to-distribute narrative

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The success of national efforts to revive securitization in various jurisdictions is dependent on the post-crisis regulatory responses to securitization. The perceived shortcoming of the originate-to-distribute model of securitization during the 2007/ 2008 global financial crisis has occasioned significant regulatory responses that can undermine the revival of securitization. This article seeks to provoke a rethink of the premise underlying these inhibitive regulatory responses by arguing that despite the originate-to-distribute model of securitization and its contribution to the US subprime mortgage crisis, the deterioration of underwriting standards would not have reached its unprecedented heights nor would the subprime mortgage crisis have ensued, if not for the role played by the US government housing policies during the 15-year period after the passage of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. The article also demonstrates that the US subprime mortgage crisis was more complex than the originate-to-distribute model by itself could account for. It advises on the need for caution in using the fallout from the financial crisis as a basis to initiate regulatory reforms that could undermine global efforts to revive securitization.
Original languageEnglish
Pages (from-to)279 - 305
Number of pages26
JournalBanking & Finance Law Review
Issue number2
Publication statusPublished - 1 May 2020


  • Economic crisis
  • housing policy
  • public housing
  • regulatory reform
  • government sponsored enterprise
  • standards
  • risk retention
  • underwriting
  • credit risk
  • subprime lending
  • mortgage companies
  • international finance


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