We study the evolution of US mortgage credit supply during COVID-19 pandemic. Although market experienced a historic boom in 2020, we show there was also large and sustained increase intermediation markups that limited pass-through low rates to borrowers. Markups typically rise periods peak demand, but this historical relationship explains only part present evidence pandemic-related labor frict...

Understanding mortgage prepayment is crucial for any financial institution providing mortgages, and it important hedging the risk resulting from such unexpected cash flows. Here, in setting of a Dutch provider, we propose to include nonlinear instruments hedge portfolio when dealing with mortgages option prepay part notional early. Based on assumption that there correlation between interest rat...