While many mortgage bankers are quick to lay the blame for repeated refinancings on mortgages with reduced closing costs, a recent report from Merrill Lynch, New York, points instead to the influence of streamlined refinancing procedures.

"The intuition here is that streamlined refinancing has the effect of increasing the financial incentive to refinance, when some financial incentive already exists," according to the report, by Arnold Shapiro and Rick Klotz.

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