Search

From the 1990’s onwards, the spread of speculative mortgage loans among the less privileged has violently reproduced and amplified forms of social exclusion. The Satellite of Pioltello – a high-density neighbourhood situated in the eastern periphery of Milan – represents an example of how the financialization of the housing market has determined the exploitation and marginalization of migrant families in Italy, causing processes of racialization of the urban space. Through the testimonies and data collected during – and after – my ethnographic research in 2018, the article will provide a reconstruction of how this neighbourhood has incorporated the mechanisms of financial speculation. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the linkage between households' social interactions and credit context and how these interactions may influence household borrowing decisions. Design/methodology/approach: Based on a sample of 45,907 individuals referred to 18 countries, drawn from the Survey of Health, Ageing and Retirement in Europe, different probit regressions are used to test the four hypotheses proposed. Findings: Empirical evidence confirms that intensive and extensive sociability are positively related to consumer debt holding. However, when social activities are considered separately, there is weak evidence that they are also related to mortgage debt holding and over-indebtedness. Moreover, at this level of analysis, the different nature of the social activities in which the individual participates in may condition the relationship with borrowing behaviour. The findings also show that relative income plays a passive role in household borrowing behaviour, since low-income households are more likely to hold mortgage and informal loans or to be over-indebted in highly indebted countries. Originality/value: First, this paper extends the knowledge of the relationship between social interactions and borrowing behaviour by considering not only the intensity and diversity of the social activities in which the individual participates, but also the different nature of these activities. Second, it proposes that social interactions may play a passive role on borrowing decision, suggesting that household's behaviour might be passively affected by the density of borrowers surrounding it. To the best of our knowledge, there has not been any attempt to test this issue regarding household borrowing decisions. Third, unlike the few empirical papers on the topic, the paper also analyses previous issues by distinguishing between different types of debts; a distinction that revels the different role played by social interactions. [ABSTRACT FROM AUTHOR]

House price indices (HPIs) are statistical measures of real estate price dynamics in defined geographic regions over defined periods of time. HPIs are important metrics that help policymakers, mortgage lenders, real estate investors, and bank regulators monitor market conditions and manage risk. HPIs that are local, reliable, and timely are essential in understanding connections between housing markets and the broader economy. In this article, we examine the algorithmic construction of Zillow's Home Value Index (ZHVI), an HPI built on black box machine learning algorithms. To provide deeper statistical insight into ZHVI than afforded by its black box construction, we develop a Bayesian generative meta‐model that approximates the black box construction of ZHVI series in 100 metropolitan areas (metros). Each ZHVI series is modeled with a global trend, a finite mixture of Gaussian processes, and a local component. We find that there are three shared dynamic patterns across the 100 markets in our analysis, and we utilize this shared latent structure to forecast ZHVI in each metro 12 months ahead. Our clustering strategy has two advantages: (i) it allows us to construct composite HPIs where member metros are learned from the data rather than predetermined; and (ii) it allows us to estimate the relative contributions of cluster‐level and metro‐specific components to a metro's ZHVI, providing a novel statistical attribution of real estate market dynamics. [ABSTRACT FROM AUTHOR]

Credit-granting institutions need to estimate the probability of loan default, which represents the chance a customer fails to make repayments as promised. Critically this estimation is intertwined with the competing risk a customer fully repays their loan while also having key predictive drivers with values that change over time. A conventional model in this setting is a competing risks Cox Model with time-varying covariates. However partial likelihood estimation of this model has two shortcomings: (1) the baseline hazard is not estimated, so calculating probabilities requires a further estimation step; and (2) a covariance matrix for both regression coefficients and the baseline hazard is not produced. This paper caters for these shortcomings by devising a maximum likelihood technique to jointly estimate regression coefficients and the cause-specific baseline hazards using constrained optimisation to ensure the latter's non-negativity. We show via simulation our technique produces regression coefficients estimates with lower bias in small samples with heavy censoring. When applied to a real-world credit risk dataset consisting of home loan data our Maximum Likelihood approach produces a smoother estimate of the cause-specific baseline hazards for default and redemption than those obtained using the Partial Likelihood and Breslow approach. This provides better clarity of the shape of these functions through both a less volatile central estimate as well as quantifying the error of this central estimate. We implement our method in R. [ABSTRACT FROM AUTHOR]

In this article, the researcher concluded with absolute certainty through the overwhelming evidence from data analysis. The Global Financial Crisis, the worldwide economic collapse, and the Great Recession were not caused by subprime mortgage lending. The Global Financial Crisis of 2007 and 2008 was caused by the destruction of the subprime mortgage industry. The politicization of misinformation gave investors shorting mortgage-back securities an opportunity to take advantage of the mood of the country resulting from corporate mistrust caused by the early 2000s corporate reporting. Evidence from data analysis in the current study suggested subprime mortgage lending did not cause an increase in the national mortgage delinquency rate. The narrative, individuals purchased homes they could not afford preceding the Global Financial Crisis was completely debunked based on the evidence presented in the current study. The evidence suggested subprime lending resulted in significantly lower mortgage delinquency rates preceding the financial crisis. The end of subprime lending resulted in skyrocketing national mortgage delinquency rates years after the subprime lending industry in the United States had been destroyed by misinformation. Mistakes by policymakers in the United States government significantly worsened the financial crisis leading to an acceleration of mortgage delinquencies across the country. The consensus among the political establishment, the media, big tech, and academia failed to raise questions regarding the false narrative of unscrupulous lending and the false conclusion of a real estate bubble. The evidence from data analysis suggested the entire narrative about subprime mortgage lending and the real estate bubble was misinformation used for politicization in the 2008 United States Presidential Election similar to the politicization of COVID-19 policies in the 2020 United States Presidential Election. The continued rapid increase in home prices around the world today, is a direct result of the misinformation that caused the Global Financial Crisis, the worldwide economic collapse, and the Great Recession. Moderate-income families around the world today are at risk of being priced out of the housing market as increased home prices lead to the rapid increase in rental housing. Higher education has used the misinformation that caused the Global Financial Crisis as justification to develop unethical business ethics and organizational behavior curriculum focused corporate social responsibility (CRS) based on the false narrative creating a negative image of capitalism for students based on a false narrative. Stockholder profits have become secondary to corporate political activism, which has been developed largely based on the misinformation that caused the Global Financial Crisis. Mainstream media and big-tech continued misinformation have become the most significant risk facing the global economy today, which must be addressed to avoid another global economic crisis. [ABSTRACT FROM AUTHOR]

We study the interest rates of privately securitized residential mortgages during the credit boom of the early 2000s. They reveal a sharp and persistent drop in the spread between mortgage and Treasury rates starting in the summer of 2003. The emergence of this mortgage rate conundrum immediately followed the collapse of an unprecedented refinancing wave, and it was more pronounced in the regions where that wave had grown faster. These same areas also experienced more originations of the nonconforming mortgages that boosted private label securitization after 2003. Mortgages originated after this shift are the first to show signs of deteriorating quality. [ABSTRACT FROM AUTHOR]

We study how bank residential mortgage lending standards are affected by risks to the local economy from natural disasters. We find that banks tighten lending standards in disaster-hit counties, suggesting that lenders are more cautious in these locations since environmental disasters can increase the long-term risks to the local economy. Tighter bank lending standards can lower access to mortgage credit and have negative consequences for the housing sector. On the other hand, we do not find any statistically significant change in the lending standards of banks that specialize in subprime loans. Finally, we show that banks tighten lending standards in those disaster-hit counties where there is a high belief about the negative effects of climate change; this indicates that disasters impact lending standards through increasing existing disaster risk awareness among lenders, whereas, lenders do not update their risk assessment in low belief counties. [ABSTRACT FROM AUTHOR]

Copyright of Cuadernos Europeos de Deusto is the property of Universidad de Deusto and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Population (00324663) is the property of Institut National d'Etudes Demographiques and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Anales de Derecho is the property of Servicio de Publicaciones de la Universidad de Murcia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Housing discrimination and racial segregation have a long history in the United States. The 1930s Home Owners' Loan Corporation (HOLC) "residential security maps," recently digitized, have become a popular visualization of Depression era mortgage lending risk patterns across American cities. Numerous housing policies have since been instituted, including the Home Mortgage Disclosure Act (HMDA), but mortgage lending bias persists. The degree to which detailed spatial patterns of bias have persisted or changed along with urban change is not well understood. We compare historic HOLC grades and contemporary levels of mortgage lending bias using spatially detailed HMDA data. We further examine the relationship between HOLC risk grades and contemporary racial and ethnic settlement patterns. Results suggest that historical mortgage lending risk categorizations and settlement patterns are associated with contemporary mortgage lending bias and racial and ethnic settlement patterns. Concerted and deliberate efforts will be needed to change these patterns. [ABSTRACT FROM AUTHOR]

Recent empirical studies have shown that during the financial crisis of 2007–2008, banks that were more heavily exposed to liquidity risk contracted their supply of credit more sharply. I contribute to the identification of this effect by relying on the use of micro-level data on U.S. mortgage loan applications, which allows me to identify liquidity risk as an important determinant of the contraction of credit in the mortgage market but as separate from the precipitous fall in credit demand, disruptions in the securitization and subprime markets, shifts in asset risk, and changing risk aversion among loan officers. [ABSTRACT FROM PUBLISHER]

Shopping for a mortgage and comparing the options is a very complicated topic because of the various types of mortgages and because of the large number of variables that should be considered. Ten years ago, Christine McClatchey and Cris de la Torre simplified the comparison process by introducing a loan payoff time horizon of 5 years. The current article attempts to further simplify the mortgage selection process by holding the loan size constant and eliminating their net loan size variable. Treating the loan size as a constant and adding in closing costs and points is another step toward easing the mortgage selection process using more realistic assumptions. [ABSTRACT FROM AUTHOR]

The Home Affordable Modification Program's (HAMP's) Principal Reduction Alternative (PRA) is a government-sponsored program to reduce the principal balances and monthly mortgage payments of troubled borrowers. We examine the effect of principal forgiveness on borrowers' subsequent mortgage default. The program's rules imply a kink in the relationship between principal forgiveness and a borrower's initial equity level. Our identification strategy exploits the quasi-experimental variation in principal forgiveness generated by this kink using a regression kink design (RKD), which compares the relationship between initial equity and default on either side of the kink. We estimate that HAMP PRA reduced the quarterly default hazard from 3.8% to 3.1%. [ABSTRACT FROM AUTHOR]

This research study surveyed current financial publications and home mortgage loan officers for the purpose of obtaining data on the obstacles outstanding student debt obligations present to home buyers when trying to qualify for home mortgage financing. After reviewing the data, recommendations were developed to assist individuals who have outstanding student debt obligations in overcoming the obstacles to home mortgage financing. [ABSTRACT FROM AUTHOR]

For many taxpayers, the requirements and computation of deductible mortgage interest are straightforward. However, circumstances and subtleties may add complexity in determining the mortgage interest deduction. Financial advisors are also often faced with taxpayers who resort to less than traditional means of owning homes and securing financing. Like many areas of tax law, the mortgage interest requirements and limitations can be complicated. [ABSTRACT FROM AUTHOR]

This study aims at investigating the roles of house price expectations and mortgages in urban dwellers' subjective well‐being (SWB) in China. Using 3,717 urban householder respondents collected in the 2011 China Household Finance Survey and categorizing the sample into three subsamples: homeowners without and with a home loan, and nonhomeowners, the ordered logit models of the ordinal‐dependent variable SWB with and without considering the endogeneity problem are estimated using these three subsamples separately. The primary finding is that house price expectations have a negative influence on the likelihood of having a better SWB only for homeowners without a home loan. However, more houses can mitigate this negative influence. For homeowners with a home loan, mortgages have a negative impact on the likelihood of having a better SWB. Finally, the Beijing sample based on the 2017 data also supports the influences of house price expectations and mortgages on SWB. [ABSTRACT FROM AUTHOR]

Since the 2008 financial crisis, the City of Detroit has faced significant housing challenges: the conventional mortgage market in the city has collapsed; numerous residents are precariously housed; and urban 'blight' and property abandonment are widespread. This paper offers an empirical focus on one experimental approach to governing these problems: the roll-out of new forms of housing-related loans to low- and moderate-income (LMI) Detroit residents. Under the rubric of financial inclusion, private and public actors have promoted these loan programmes as a way to both improve the housing outcomes of financially excluded residents and reboot the city's mortgage market. The paper critically analyses these claims through a political economy lens, asking how, why and with what impacts housing-related financial inclusion programmes have been developed in post-crisis Detroit. The paper argues: (1) that these financial inclusion efforts are the products of an existing orientation toward market-based governance mechanisms and have grown out of a broader political project of property market revival; and (2) that in spite of their rhetorical commitments to improving the housing outcomes of LMI residents, many of the new loan programmes are ill-equipped to deliver on these promises in practice, prioritising market revitalisation over the needs of borrowers. [ABSTRACT FROM AUTHOR]

Copyright of Turkish Studies - Economics, Finance, Politics is the property of Electronic Turkish Studies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Ludwik Wołowski was a Polish November emigrant in France. There, he gained recognition as an outstanding economist, banker and republican politician. The article focuses on the issue of mortgage loan, which is extremely important for Wołowski. It presents both the theoretical concepts of the Pole from 1834, his political activity in the years 1848–1851 aimed at changing the provisions of the mortgage law in France, and finally the moment of co-creation by Wołowski Crédit Foncier, the first modern mortgage bank in France, and the further history of the bank managed by Wołowski, in the board of which he sat until his death in 1876. In the first part, the text presents not only the criticism of the French mortgage system by Wołowski (primarily the so-called secret mortgages), but also his draft changes and the loan and mortgage model proposed by him and the companies that may grant it. In the second, it shows the parliamentary activity of Wołowski, an attempt to force through appropriate changes in the banking law and the reasons for its defeat. In the third, the most extensive, the article describes not only the very moment of establishing Crédit Foncier and the two-year period of management by Wołowski, but also the further, controversial operation of the bank until the second half of the 1870s. All this against the backdrop of the changing French Monarchy of July, the Second Republic and the Second Empire. [ABSTRACT FROM AUTHOR]

The state of financial support of seven state programs of housing affordability, which currently operate in Ukraine, has been studied and analyzed. As a result, the most effective programs in terms of state aid and the average amount of state aid per recipient were identified. The main significant shortcoming in the implementation of state programs for housing affordability is their constant underfunding from the state budget, which hinders the manifestation of a synergistic positive effect. Deficit of budget funds and restrictions or complete refusal to allocate budget allocations to finance state support for housing affordability programs for various categories of the population negatively affect the state of development of the residential real estate market in Ukraine. This constrains both the demand and the supply of housing due to the lack of financial resources to cover the existing investment needs both at the construction stage and during the sale of already built residential real estate. The multiplier effect from the implementation of state programs of housing affordability on the revival of the real estate market by attracting citizens’ own funds to the construction industry is determined. The priority mechanisms for providing housing to Ukrainians are outlined: mortgage loans at 7% per annum with a down payment of 15% of the cost of housing and financial leasing at 5% without down payment, which are aimed primarily at supporting the population of Ukraine and strengthen protection of interest’s citizens. There is a need to improve financial and credit instruments that overcome the problem of lack of financial resources for the real estate market and help to quickly create the necessary residential real estate, taking into account the strategic interests of all participants — individuals (investors), developers, banks and non-bank financial institutions, state and local authorities, as well as local communities. [ABSTRACT FROM AUTHOR]

I develop a structural model of mortgage demand and lender competition to study how leverage regulation affects the U.K. mortgage market. Using variation in risk‐weighted capital requirements across lenders and mortgages with different loan‐to‐values (LTVs), I show that a 1‐percentage‐point increase in risk‐weighted capital requirements increases lenders' marginal cost of originating mortgages by about 26 basis points (11%) on average. I use the estimated model to study proposed leverage regulations. Counterfactual analyses show that large lenders exploit a regulatory cost advantage, which increases concentration by about 20%, and suggest that banning high‐LTV mortgages may reduce large lenders' equity buffer. [ABSTRACT FROM AUTHOR]

Modern mortgage law is designed for a world that no longer exists. The residential mortgage transaction of today looks nothing like it did during the formative period when the property laws governing mortgages were developed. What was once a local dealing between two individuals and largely for commercial or quasi-commercial purposes has now become a housing-centric financial transaction-turned-asset between multiple distant and often invisible parties that operate as part of a national market. Yet, although the mortgage transaction has changed, mortgage law has not. Property law rules that once balanced the rights of mortgagors and mortgagees now completely fail to furnish aggrieved homeowners with meaningful relief when faced with wrongs that stem from the complexities of the securitization of mortgage loans and the acts of intermediaries. The result is that consumers suffer wrongs at the hands of mortgage creditors and their contractors but have no remedies to right them. This is particularly true in light of the economic fallout from the COVID-19 pandemic and the threat of a coming wave of foreclosures that, if the 2008 financial crisis is any indication, promise to leave households vulnerable and completely at the mercy of the mortgage finance machine. This Article shows why an overhaul to residential mortgage law's most basic doctrines is long overdue. [ABSTRACT FROM AUTHOR]

In the context of the financialization of housing and everyday life, mortgage credits and other forms of indebtedness have become key factors. Recent studies have explored the idea of debt as power relations mainly in the Global North. Through mixed methods, this article examines the notion of debt systems in emerging capitalist economies, and illustrates how housing movements and people without access to formal credits are organising themselves. A thematic analysis from both in-depth interviews with representatives of three housing movements, and data from Chilean national financial surveys, reveals three main results: the interplay of different forms of debt to form a 'peripheral debt system'; the need to explore the formation of gender and racial inequalities under financialization; and how individual struggles are replaced by collective responses and solidarity from both financial and emotional dimensions. The authors call for a more grounded analysis of debt in order to examine marginalised groups and heterogeneous types of indebtedness on the periphery and to trace further comparisons with other housing movements globally in the context of financialization. [ABSTRACT FROM AUTHOR]

The mortgage industry has long been central to racially and ethnically stratified access to homeownership. Liberalized access to credit during the 1990s and early 2000s targeted subprime and other high-cost loans to individuals and communities of color. This article draws on annual data from the Home Mortgage Disclosure Act (HMDA) from 2004 through 2017 to assess short-term variation in racial and ethnic disparities in loan outcomes associated with the Great Recession. We show that, relative to the boom, this period is associated with a reduction in disparities in loan outcomes between non-Hispanic whites and Asians on the one hand and blacks and Latinos on the other. This is particularly true for the disproportionate channeling of black and Latino applicants into high-cost loans, and in communities with higher minority concentrations. As the economy and access to credit improved, particularly after 2011, black and Latino over-representation in high-cost loans began to rebound, though ethno-racial disparities in loan rejection continued well below levels observed during the boom years. The return of inequality in high-cost lending is particularly troubling in light of the sharp drop in minority applications. Implications for ethno-racial stratification are discussed. [ABSTRACT FROM AUTHOR]

In this study, we examine the effect of disability on mortgage delinquency. Using 2007-2017 data from the Panel Study of Income Dynamics (PSID), we study the impact of disability on expost delinquency rate and ex-ante self-assessed delinquency risk. We find that disability substantially increases a household's likelihood of falling behind on mortgage payments. Our point estimates suggest that on average, households with disabilities are about 41.65 percent more likely to be delinquent. This effect is highly cyclical and is much stronger during economic downturns. Households with disabilities are 56.38 percent more likely to be delinquent during the 2007-2009 U.S. housing crisis and its aftermath, and whereas the effect is rather muted during the subsequent economic recovery. Additionally, we discover that households with disabilities are generally conscious of their greater vulnerability to financial troubles. Households with disabilities are 27.28 percent more likely to report possible future delinquencies. This finding suggests that in addition to increasing expost delinquency rates, disability can also be psychologically burdensome for many homeowners, and this effect spreads beyond households who actually fall into delinquency. [ABSTRACT FROM AUTHOR]

Recent frequent "thunderstorm incidents" of the internet financial platforms (IFPs) have caused the panic of investors. In order to measure and reduce the investment risk of IFPs, the focus of this study is to evaluate the reputation of IFPs regarding investment risk. First, the reputation evaluation indicator system of IFPs is constructed from two dimensions of direct and indirect reputations. Then, based on this system, an improved fuzzy evaluation approach (IFEA) integrating the method of fuzzy comprehensive evaluation (FCE), the analytic hierarchy process (AHP), and the factor analysis (FA) are proposed for evaluating the reputation of IFPs. Finally, a case study based on the data of 20 peer-to-peer (P2P) lending platforms from "Home of Online Loans" (HOL) in China is used to illustrate the IFEA. Results show that the IFEA can reduce uncertainty and randomness in the determination process of indicator weight and membership degree and therefore accurately obtain the reputation level of IFPs and help investors make better decisions. Meanwhile, the key factors in determining the reputation of IFPs are identified, thereby improving the reputation level of the IFPs. [ABSTRACT FROM AUTHOR]

Copyright of Collected Papers of the Faculty of Law in Split / Zbornik Radova Pravnog Fakulteta u Splitu is the property of Split Faculty of Law and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial Space is the property of Cherkasy Institute of Banking, University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)