National Foreclosure Mitigation Counseling Program Evaluation: Final Report Rounds 1 and 2

Mayer, Neil S.; Tatian, Peter; Temkin, Kenneth; Calhoun, Charles A.

doi:10.2139/ssrn.1980920

Cited by 19 publications

(18 citation statements)

References 9 publications

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“…Given that only a portion of borrowers—even in a pool of high‐risk subprime mortgages—will take up counseling, we would predict a match rate lower than the market share. By comparison, the Mayer et al () study matched counseling records to the LPS loan database, which covers about 70 percent of the mortgage market, yielding a 22 percent match rate of counseling records to monthly loan records, a rate over seven times larger than the match rate found using CTS data; the market share of this data set was nearly nine times larger. The underlying distribution of counseling in each sample of loans is unknown, but our match rate might be consistent with a lower rate of counseling among distressed subprime borrowers with loans held in private mortgage‐backed securities…”

Section: Datamentioning

confidence: 99%

The Effects of Foreclosure Counseling for Distressed Homeowners

Collins¹,

Schmeiser²

2012

J Policy Anal Manage

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In the face of the housing market downturn of the late 2000s, policymakers promoted third‐party mortgage default counseling as a way to help people at risk of losing their homes to avoid foreclosure. Using a unique data set of monthly loan payments remitted to investors combined with administrative data from a national counseling agency, this study estimates the effects of default counseling on the probability that troubled mortgage borrowers will lose their homes to foreclosure. Borrowers are actually more likely to miss loan payments after receiving counseling, but the probability of losing a home to foreclosure drops after counseling, suggesting that counseling policies may be beneficial during housing crises.

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Section: Datamentioning

confidence: 99%

The Effects of Foreclosure Counseling for Distressed Homeowners

Collins¹,

Schmeiser²

2012

J Policy Anal Manage

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“…The authors employ a two‐stage model to account for selection into counseling and find that the receipt of counseling is associated with higher rates of cured loans. A study by Collins (2007) and a preliminary evaluation of the National Foreclosure Mitigation Counseling Program (Mayer et al, 2009) also find positive impacts of default counseling on loan outcomes.…”

Section: Literature Reviewmentioning

confidence: 98%

State mortgage foreclosure policies and lender interventions: Impacts on borrower behavior in default

Collins

Lam

Herbert

2011

J Policy Anal Manage

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Due to the rise in foreclosure filings, policymakers are increasingly concerned with helping families in financial distress keep their homes. This paper tests the extent to which distressed mortgage borrowers benefit from three types of state foreclosure polices: (1) judicial foreclosure proceedings, (2) statutory rights of redemption, and (3) statewide foreclosure-prevention initiatives. Based on an analysis of borrowers in default who reside in 22 cross-state metropolitan statistical area pairs, state policies generally have weak effects. Both judicial foreclosure proceedings and foreclosure prevention initiatives are associated with modest increases in loan modification rates. Using a matching procedure, a lender's letter promoting mortgage default counseling was associated with increases in loan modifications, decreases in loan cures, and decreases in foreclosure starts. The effects of the letter were also stronger in states with judicial proceedings.

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“…Studies have shown that housing counseling can help prospective buyers make wiser choice and help distressed homeowners avoid foreclosures (Mayer et al. ; Quercia and Cowan ). This paper suggests that housing counseling services may be most effective if they target different subpopulations in different neighborhoods, perhaps joining with different local partner organizations and setting up operations in different types of locations (Zou ).…”

Section: Limitations and Policy Implicationsmentioning

confidence: 99%

Re‐examining the Neighborhood Distribution of Higher Priced Mortgage Lending: Global versus Local Methods

Zou¹

2015

Growth and Change

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This paper demonstrates the application of the local geographically weighted regression (GWR) method to mortgage studies, using the Philadelphia metropolitan statistical area (MSA) as a case study. Previous related studies widely employed the global, ordinary least square (OLS) method to examine the spatial distribution of subprime/higher priced mortgages. The OLS method, however, masks the spatial variations in mortgage distributions. The innovative GWR method not only provides a significant improvement in model fitness but also reveals that the statistical relationships between neighborhood characteristics and the prevalence of higher priced mortgage shares are spatially varied. In addition, the GWR method can bring forward potential implications for place‐based policy making. Improving upon previous methodologies in mortgage studies, this paper shows that the GWR method can advance our understanding of how neighborhood environments are associated with mortgage lending patterns.

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National Foreclosure Mitigation Counseling Program Evaluation: Final Report Rounds 1 and 2

Cited by 19 publications

References 9 publications

The Effects of Foreclosure Counseling for Distressed Homeowners

The Effects of Foreclosure Counseling for Distressed Homeowners

State mortgage foreclosure policies and lender interventions: Impacts on borrower behavior in default

Re‐examining the Neighborhood Distribution of Higher Priced Mortgage Lending: Global versus Local Methods

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