Housing Lock: Dutch Evidence on the Impact of Negative Home Equity on Household Mobility

2017 ◽  
Author(s):  
Asaf Bernstein ◽  
Daan Struyven
Keyword(s):  
Home Equity ◽  
Household Mobility ◽  
The Impact

scholarly journals Economic Policy Uncertainty and Small Business Expansion

2011 ◽  
pp. 1-4
Author(s):  
Mark E. Schweitzer ◽  
Scott Shane
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Housing Prices ◽  
Business Owners ◽  
Small Business Owners ◽  
Policy Uncertainty ◽  
Home Equity ◽  
Economic Policy Uncertainty ◽  
The Impact ◽  
Real Constraint

Small businesses continue to report problems obtaining the financing they need. Because small business owners may rely heavily on the value of their homes to finance their businesses (through mortgages or home equity lines), the fall in housing prices might be one of the causes of their difficulty. We analyze information from a variety of sources and find that homes do constitute a significant source of capital for small business owners and that the impact of the recent decline in housing prices is significant enough to be a real constraint on small business finances.

Sensory Impairment and the Odds of Adverse Consequences of Unmet Needs for Care Among Older Adults

2021 ◽  
Author(s):  
Corinne Pittman ◽  
Carrie L Nieman ◽  
Nicholas Reed ◽  
Bonnielin K Swenor ◽  
Amber Willink
Keyword(s):  
Older Adults ◽  
Hearing Impairment ◽  
Self Care ◽  
Vision Impairment ◽  
Sensory Impairment ◽  
Adverse Consequence ◽  
Household Mobility ◽  
Nationally Representative ◽  
The Impact

Abstract Introduction Vision and hearing impairments are highly prevalent conditions among older adults, and well-established links exist between sensory impairment and household, mobility, and self-care activity limitations. However, studies examining the impact of unmet long-term services and supports (LTSS) needs have not considered the role of vision and hearing impairment on the risk of experiencing adverse consequences, including wetting or soiling oneself. Methods Using Rounds 1 and 5 of the National Health and Aging Trends Study, a nationally-representative survey of Medicare beneficiaries aged 65 and older, we examine the association of vision and hearing impairment on the odds of experiencing an adverse consequence while accounting for other socio-demographic and health status factors. Results Among a weighted population of 49,770,947 community-living older adults with limitations in household, mobility, or self-care activities, 20.1% (95% CI: 19.2-21.0) experienced an adverse consequence as a result of unmet LTSS needs. In the full-adjusted regression, individuals with vision or hearing impairment had 96% (OR:1.96; 95% CI: 1.64-2.34) and 43% increased odds (OR:1.43; 95% CI: 1.24-1.65), respectively of experiencing any adverse consequence. Hearing impairment was associated with higher odds of household or self-care adverse consequences, while vision impairment was associated with higher odds of mobility or self-care adverse consequences. Discussion Sensory impairment may increase the risk for adverse consequences for older adults with unmet LTSS needs. Activities that support older adults living safely in the community should consider the role of sensory impairment and how to address the unique needs of those with hearing or vision impairment.

Losses on Dutch residential mortgage insurances

2014 ◽  
Vol 7 (3) ◽  
pp. 307-326 ◽  
Author(s):  
M.K. Francke ◽  
F.P.W. Schilder
Keyword(s):  
Housing Market ◽  
Loss Probability ◽  
Mortgage Default ◽  
Home Equity ◽  
Current Crisis ◽  
Data Set ◽  
Content Type ◽  
Mortgage Insurance ◽  
Dutch Housing ◽  
The Impact

Purpose – This paper aims to study the data on losses on mortgage insurance in the Dutch housing market to find the key drivers of the probability of loss. In 2013, 25 per cent of all Dutch homeowners were “under water”: selling the property will not cover the outstanding mortgage debt. The double-trigger theory predicts that being under water is a necessary but not sufficient condition to predict mortgage default. A loss for the mortgage insurer is the result of a default where the proceedings of sale and the accumulated savings for postponed repayment of the principal associated to the loan are not sufficient to repay the loan. Design/methodology/approach – For this study, the authors use a data set on losses on mortgage insurance at a national aggregate level covering the period from 1976 to 2012. They apply a discrete time hazard model with calendar time- and duration-varying covariates to analyze the relationship between year of issue of the insurance, duration, equity, unfortunate events like unemployment and divorce and affordability measures to identify the main drivers of the probability of loss. Findings – Although the number of losses increases over time, the number of losses relative to the active insurance is still low, despite the fact that the Dutch housing market is the world’s most strongly leveraged housing market. On average, the peak in loss probability lies around a duration of four years. The average loss probability is virtually zero for durations larger than 10 years. Mortgages initiated just prior to the beginning of the financial crisis have an increased loss probability. The most important drivers of the loss probability are home equity, unemployment and divorce. Affordability measures are less important. Research limitations/implications – Mortgage insurance is available for the lower end of the market only and is intended to decrease the impact of risk selection by banks. The analysis is based on aggregate data; no information on individual households, like initial loan-to-value and price-to-income ratios; current home equity; and unfortunate events, like unemployment and divorce, is available. The research uses averages of these variables per calendar year and/or duration. Information on repayments of insured mortgages is missing. Originality/value – This paper is the first to describe the main drivers of losses on insured mortgages in The Netherlands by using loss data covering two housing market crises, one in the early 1980s and the current crisis that started in 2008. Much has changed between the two crises. For instance, prices have risen steeply as has household indebtedness. Furthermore, alternative mortgage products have increased in popularity. Focusing a study on the drivers of mortgage losses exclusively on the current crisis could therefore be biased, given the time-specific circumstances on the housing market.

A DESCRIPTIVE EXAMINATION OF THE IMPACT OF CANADIAN MORTGAGE STRESS TEST IN LENDING, BORROWING AND AFFORDABILITY

2021 ◽  
Vol 5 (9) ◽  
Author(s):  
Tariq Sardar ◽  
Tariq Sardar
Keyword(s):  
Interest Rates ◽  
Stress Test ◽  
Home Equity ◽  
Mortgage Debt ◽  
Residential Properties ◽  
History Of ◽  
Research Findings ◽  
The Government ◽  
Loan Approval ◽  
The Impact

A number of Canadians need to borrow money from lenders to purchase residential properties through mortgage route. The history of existing mortgage system in Canada is more than 100 years old. Canada Mortgage and Housing Corporation (CMHC) was created in 1946 to regulate the industry. There were 4.3 million homes under mortgage debt until 2017 and 0.5 million homes had Home Equity Line of Credit. In 2018, the Banking Regulatory Authority Canada imposed a New Stress Test on mortgage borrowers and changed the criteria of loan approval. Previously, the lenders do not need to test the affordability of those borrowers who put a down payment of 20% or above but now the lenders must need to test the borrowing power of all applicants under higher interest rates imposed by the government rather than the actual rate of interest being offered by lenders to borrowers. The descriptive study examined the influence of stress test in lending process, borrowing capacity of home buyers and loan affordability to pay off the debt under agreed terms. The study explains the current situation of delinquency and possible default after analyzing 370 samples collected from the city of Brampton. The research findings also highlighted the testing criteria, payment frequencies and actual amount to pay off the debt after purchasing.

scholarly journals The Raced–Space of Gentrification: “Reverse Blockbusting,” Home Selling, and Neighborhood Remake in North Nashville

2020 ◽  
Vol 19 (1) ◽  
pp. 223-244 ◽  
Author(s):  
Cameron Hightower ◽  
James C. Fraser
Keyword(s):  
Predominantly White ◽  
Historically Black ◽  
The United States ◽  
Evidence Base ◽  
Home Equity ◽  
Black Neighborhoods ◽  
Family Wealth ◽  
History Of ◽  
The Impact

Proponents of gentrification often use some rendition of a “rising tide lifts all boats” justification when assessing the impact that gentrification has on original residents in a gentrifying area. One of the benefits that is widely accepted by proponents and opponents of gentrification is that homeowners experience an increase in property values that can easily be transferred to family wealth or cash. Yet, there is virtually no research that provides an evidence base to support this seemingly direct relationship. Through a case study of prominent historically black neighborhoods in North Nashville, we find that the process of potential home equity realization for original homeowners in a gentrifying area is complicated by a variety of factors. We theorize that, in addition to class and socioeconomic phenomena, home buying in the context of gentrification operates much like reverse or inverted “blockbusting” during the era of urban renewal. These processes involve the creation of value out of the racialization of space whereby black homeowners and residents are incentivized and often forced to leave as a precursor to predominantly white populations entering. We comment on how these findings fit into the history of discriminatory and exploitative housing practices in the United States.

scholarly journals Quantifying the effect of early retirement on the wealth of individuals with depression or other mental illness

2011 ◽  
Vol 198 (2) ◽  
pp. 123-128 ◽  
Author(s):  
Deborah J. Schofield ◽  
Rupendra N. Shrestha ◽  
Richard Percival ◽  
Simon J. Kelly ◽  
Megan E. Passey ◽  
...  
Keyword(s):  
Mental Illness ◽  
Labour Force ◽  
Financial Burden ◽  
Labour Force Participation ◽  
Chronic Health Condition ◽  
Mental Illnesses ◽  
Microsimulation Model ◽  
Home Equity ◽  
Cross Sectional ◽  
The Impact

BackgroundIn addition to the health burden caused by mental illnesses, these conditions contribute to economic disadvantage because of their impact on labour force participation.AimsTo quantify the cost of lost savings and wealth to Australians aged 45–64 who retire from the labour force early because of depression or other mental illness.MethodCross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model.ResultsPeople who are not part of the labour force because of depression or other mental illness have 78% (95% CI 92.2–37.1) and 93% (95% CI 98.4–70.5) less wealth accumulated respectively, compared with people of the same age, gender and education who are in the labour force with no chronic health condition. People who are out of the labour force as a result of depression or other mental illness are also more likely to have the wealth that they do have in cash assets, rather than higher-growth assets such as superannuation, home equity and other financial investments.ConclusionsThis lower accumulated wealth is likely to result in lower living standards for these individuals in the future. This will compound the impact of their condition on their health and quality of life, and put a large financial burden on the state as a result of the need to provide financial assistance for these individuals.

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