Public audit oversight and the originate-to-distribute model

• Main Authors: AOBDIA, Daniel, DOU, Yiwei, KIM, Jungbae
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Regulation; PCAOB Inspections; Auditors; Originate-to-distribute model of lending; Securitizations; Banks; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1916; https://ink.library.smu.edu.sg/context/soa_research/article/2943/viewcontent/ADK__2021___1_.pdf
• Institution: Singapore Management University

The originate-to-distribute (OTD) model, in which the originators of mortgages sell or securitize the mortgages to third parties, likely contributed to the 2008 financial crisis. Auditors were blamed for permitting clients to understate the risks of the model in their financial reports, fostering un...