Determinants of Commercial Mortgage Choice
An analysis of the choice between conduit loans and traditional whole loans in commercial mortgages. The author compares conduit and whole loan programs, and discusses their differences and the effects of information technology on the mortgage choice problem. Conduit lending produces a more volatile source of funding in posted loan rates and more stability in terms of capital availability. The specific loan program characteristics associated with conduit lending are the greater ease of accessing loan program information, faster loan closing and broader selection. The longer-run implications are that higher quality borrowers will eventually disintermediate mortgage brokers due to improvements in information technology. This suggests that there will be fewer brokers working more efficiently with a larger number of borrowers. Consequently, deep as opposed to broad service provision is the inevitable result of advancing information technology and internet-based transactions.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: 256 South 37th Street, Philadelphia, PA 19104-6330|
Web page: http://zell-lurie-center.wharton.upenn.edu/working.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wop:pennzl:385. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.