The Modern Economics of Mortgage Lending - Professor Rohan Pitchford 5:30pm - networking drinks and finger food 6pm - Seminar and Q&A 7pm - networking drinks and finger food 7:30pm - close In Australia, as elsewhere, the role of securitization in mortgage lending trended upwards, and strongly in some cases. But international studies of the period prior to the GFC show securitized financing is associated with significantly higher default rates than loans originated and held by the same institution (ie banks). Why should it matter which party holds foreclosure rights? Why were low-quality securities not recognised as lemons and rejected by the market?   A popular answer to these questions is that originators sold low quality loans for the purpose of securitization, and investors bought them because they underestimated their riskiness. Yet most mortgage-backed securities were held by sophisticated financial institutions that stood to lose a significant amount of money in buying lemons. Can economics shed a light on these arrangements - and what might it mean for regulation of the mortgage market?