Encouraging Mortgage Lending in 'Underserved' Areas: The Potential for Expanding Home Ownership in the US

1999 ◽  
Vol 14 (6) ◽  
pp. 777-801 ◽  
Author(s):  
George Galster ◽  
Laudan Aron ◽  
William Reeder
Keyword(s):  
Home Ownership ◽  
Mortgage Lending ◽  
The Us

scholarly journals Would Macroprudential Regulation Have Prevented the Last Crisis?

2019 ◽  
Vol 33 (1) ◽  
pp. 107-130 ◽  
Author(s):  
David Aikman ◽  
Jonathan Bridges ◽  
Anil Kashyap ◽  
Caspar Siegert
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Financial System ◽  
Mortgage Lending ◽  
Financial Policy ◽  
Policy Interventions ◽  
The Us ◽  
Set Up ◽  
The Global Financial Crisis

How well equipped are today’s macroprudential regimes to deal with a rerun of the factors that led to the global financial crisis? To address the factors that made the last crisis so severe, a macroprudential regulator would need to implement policies to tackle vulnerabilities from financial system leverage, fragile funding structures, and the build-up in household indebtedness. We specify and calibrate a package of policy interventions to address these vulnerabilities—policies that include implementing the countercyclical capital buffer, requiring that banks extend the maturity of their funding, and restricting mortgage lending at high loan-to-income multiples. We then assess how well placed are two prominent macroprudential regulators, set up since the crisis, to implement such a package. The US Financial Stability Oversight Council has not been designed to implement such measures and would therefore make little difference were we to experience a rerun of the factors that preceded the last crisis. A macroprudential regulator modeled on the UK’s Financial Policy Committee stands a better chance because it has many of the necessary powers. But it too would face challenges associated with spotting build-ups in risk with sufficient prescience, acting sufficiently aggressively, and maintaining political backing for its actions.

scholarly journals Choice between Rent and Mortgage: Evaluating the Net Present Value of Home Ownership

2019 ◽  
Vol 11 (4) ◽  
pp. 7-18
Author(s):  
O. I. Ivanov ◽  
M. M.S. Naimi
Keyword(s):  
Real Estate ◽  
Net Present Value ◽  
Home Ownership ◽  
Housing Prices ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Model Parameters ◽  
Macroeconomic Conditions ◽  
Financial Variables ◽  
Mortgage Interest

The article considers the problem of choosing between the ownership of residential real estate and its rental as a solution to the investment problem. The purpose of the article is to formalize this task using only financial variables (without explicitly including non-monetary preferences) and testing it on real Russian data on real estate and mortgage lending markets. The results can be used: a) at the house-hold level, which usually poorly take into account the financial side of the decision; b) at the level of macroeconomic policy to predict the dynamics of the mortgage market. We identified the following key model parameters: the expected rate of growth in housing and rental prices, mortgage interest, and the planned period of real estate ownership. The model demonstrates that for an average of Moscow or Russian housing with enough period of ownership, the purchase is generally more profitable in the cur-rent macroeconomic conditions. However, if the forecast for the dynamics of changes in housing prices worsens, when the nominal price increase is 5-8% lower than the discount rate, the answer may change in favor of renting. This is especially true in connection with the negative dynamics of real prices in the Russian housing market.  

scholarly journals Mortgage lending in Ukraine: analysis of influence factors and scammers

2020 ◽  
Keyword(s):  
Influence Factors ◽  
Bank Lending ◽  
Mortgage Lending ◽  
Mortgage Loan ◽  
Negative Consequences ◽  
Mortgage Loans ◽  
Mortgage Fraud ◽  
The Us ◽  
Us Dollar ◽  
The Cost

This article reveals the concept of "mortgage lending", defines the subject of mortgage lending, determines the percentage of buyers from the total population in the region who bought a mortgage loan in Ukraine and analyzes items related to the concept of mortgage.The work studies the factors that affect the demand for mortgage bank lending in Ukraine. Uneven demand for mortgages in different regions of Ukraine has been revealed. Among the reasons for the decline in mortgage lending, the level of per capita income in the regions of Ukraine was analyzed, the migration of the population was studied, and the cost of one square meter of housing in the regions of Ukraine was determined. The dynamics of the change in the exchange rate of the US dollar against the hryvnia was also analyzed. The US dollar in 2010-2020 was not stable, which became a huge lever in the development of mortgage lending. Graphically shows the change in inflation indices for 2017-2020 in percent. This article examines the dynamics of mortgage loans over the past 10 years and their share in the total loan portfolios of households. Due to this, it is determined that in Ukraine mortgage loans make up only a small share of all loans in general. The concept of "fraud" is also analyzed and its types are defined, in particular those related to mortgage bank lending. Examples of the most high-profile mortgage lending scams in Ukraine are given, such as the Elite Center, Wojciechowski's new buildings, Villa Sofia Residential Complex, and Kotsyubynsky Residential Complex. The most common mortgage fraud schemes are highlighted. Scams have been analyzed in terms of the subjects of fraudulent schemes. Based on the study, the main measures to avoid negative consequences from various parties to the loan agreement were identified.

Home-ownership and Unemployment in the US

Urban Studies ◽  
2001 ◽  
Vol 38 (9) ◽  
pp. 1509-1520 ◽  
Author(s):  
Richard K. Green ◽  
Patric H. Hendershott
Keyword(s):  
Home Ownership ◽  
The Us

Subprime Mortgages, Market Impact, and Safety Nets

2008 ◽  
Vol 11 (03) ◽  
pp. 465-492 ◽  
Author(s):  
Ronald D. Watson
Keyword(s):  
Interest Rates ◽  
Mortgage Lending ◽  
Financial Industry ◽  
Safety Nets ◽  
Subprime Mortgages ◽  
The Us ◽  
Low Interest Rates ◽  
Pros And Cons ◽  
Demographic Shifts ◽  
Credit Losses

The US financial system is undergoing a painful restructuring as credit losses originating in the mortgage finance sector of the economy grow ever larger. A combination of factors including general prosperity, demographic shifts in demand for housing, low interest rates, innovations in mortgage lending and securitization, and a breakdown in credit quality control systems all contributed to this problem. Public policymakers and industry leaders are struggling to find ways to stem the credit losses, restructure and recapitalize the financial industry, and set the economy on a path to recovery. This paper reviews the origins of this problem, explains the events that precipitated the crisis in 2007, and analyzes the pros and cons of the "fixes" that have been proposed to address these problems.

Building a Property-Owning Democracy, 1945–1970

2018 ◽  
pp. 48-71
Author(s):  
Stuart Aveyard ◽  
Paul Corthorn ◽  
Sean O’Connell
Keyword(s):  
Home Ownership ◽  
Labour Party ◽  
Mortgage Lending ◽  
Local Authorities ◽  
Conservative Government ◽  
Self Reliance ◽  
Similar Vein

The chapter explains the emerging concept of a property-owning democracy. Encouraging home ownership, Conservatives argued, increased ‘independence of character, self-reliance, initiative, and the habit of saving and the acceptance of responsibility’. The Conservative government of 1951 granted local authorities powers to sell council houses to their tenants. Conservatives portrayed the Labour Party as hostile to home ownership. However, Labour revisionists encouraged colleagues to take the concept of a property-owning democracy seriously as part of a strategy to refresh their egalitarian agenda. In similar vein, Anthony Crosland argued that the concept was a ‘socialist rather than a conservative ideal’ as long as property was ‘well distributed’. Thus, as Britain became more affluent, the central debate on housing shifted from one centred on which government built the most houses to which party would offer homeowners the best deal, with a focus on the terms of mortgage lending.

scholarly journals Lending practices to same-sex borrowers

2019 ◽  
Vol 116 (19) ◽  
pp. 9293-9302 ◽  
Author(s):  
Hua Sun ◽  
Lei Gao
Keyword(s):  
Sexual Orientation ◽  
Default Risk ◽  
Local Level ◽  
Spillover Effects ◽  
Mortgage Lending ◽  
Average Charge ◽  
Same Sex ◽  
Approval Rate ◽  
The Us ◽  
Annual Total

Using massive US mortgage lending data, we propose a method to infer a borrower’s sexual orientation indirectly without a self-identification requirement and demonstrate the method’s potential to approximately measure the sexual orientation of the US population at the local level annually over decades. We continue to examine the lending practices to same-sex borrowers and its spillover effects. The persistent results since 1990 reveal that, in contrast with otherwise comparable different-sex loan applicants, the approval rate for same-sex applicants is ∼3–8% lower. Furthermore, conditional on approval, lenders, on average, charge about 0.02–0.2% higher interest to same-sex borrowers, which is equivalent to an annual total of $8.6 million to $86 million in additional interest/fees nationwide. Meanwhile, we find that same-sex borrowers are less risky overall, as they exhibit similar default risk but lower prepayment risk. Finally, we document findings of spillover effects. That is, when the share of a neighborhood’s same-sex population increases, both same-sex and different-sex borrowers seem to experience more unfavorable lending outcomes overall. The findings should raise enough concerns to warrant further investigations.

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