The potential and limitations of mortgage innovation in fostering homeownership in the United States

Listokin, David; Wyly, Elvin; Schmitt, Brian; Voicu, Ioan

doi:10.1080/10511482.2001.9521416

Cited by 30 publications

(31 citation statements)

References 28 publications

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“…The understanding that loans to low-income families did not cause savings and loans to fail was accompanied by a growing recognition that low-income loans were profitable and good insurance against loss (Listokin et al, 2002). This perceptual shift fostered a new look at the potential low-income homebuyer.…”

Section: The Genesis Of Low-income Homeownership Policymentioning

confidence: 99%

Low-income Homeownership: American Dream or Delusion?

2006

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This paper is a critical analysis of recent US policy to promote low-income homeownership. It examines the ideology and assumptions buttressing this policy, evidence on the effects of low-income homeownership and the viability of homeownership as a strategy for low-income families. Evidence suggests that the prospect for sustained growth in low-income homeownership may be limited. Research does not provide uniform support for it as a tool for asset accumulation, neighbourhood economic development or other social and political goals. Alleged effects of homeownership may be artefacts of self-selection and the conflation of homeownership with unobserved characteristics coincident with buying homes. What homeownership does and why are not well understood because of difficulties disentangling what homeownership means. The elevation of low-income homeownership to its current status has deflected political attention away from alternative policies for affordable housing.

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Section: The Genesis Of Low-income Homeownership Policymentioning

confidence: 99%

Low-income Homeownership: American Dream or Delusion?

2006

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“…These findings point to a clear policy implication: the need to promote greater homeownership. It can be encouraged in a variety of ways, including community land trusts and first-time home buyer programs that reduce or eliminate closing costs (Listokin et al 2001). City government and community-based organizations (CBOs) can promote these options to longtime renters who have the financial means to buy a house.…”

Section: Discussionmentioning

confidence: 99%

Assessing residents’ opinions on changes in a gentrifying neighborhood: A case study of the Alberta neighborhood in Portland, Oregon

Sullivan

2006

Housing Policy Debate

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In this article, I use survey data to examine residents' opinions about changes in the gentrifying Alberta neighborhood of Portland, OR. This neighborhood is diverse in terms of race, socioeconomic status, tenure status, and length of residence, and there has been an influx of educated white residents, some of whom have been instrumental in creating the new "Alberta Arts" identity, coupled with a decline in black residents, businesses, and cultural institutions. I evaluate which of the residents are most likely to approve of these changes.The majority of the residents like the way the neighborhood is evolving. However, homeowners and longtime white residents are more likely to approve of the changes. Further analysis reveals that homeowners and white residents have more relations with-and are more trusting of-their neighbors and shop more at the neighborhood's new grocery store. Homeowners are also less likely to feel vulnerable to being displaced.

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“…The report by Listokin et al (2001) titled "The Potential and Limitations of Mortgage Innovation in Fostering Homeownership in the United States" represents the current state of the art in this literature. Following Calhoun and Stark (1997), the model assumes that current renters would seek to conform to the behavior of comparable renters who previously moved to homeownership.…”

Section: Limitations Of the Static Methodologymentioning

confidence: 99%

“…In the "SEMs and homeownership" section, we compute the possible impact of SEMs on the homeownership rate, using a methodology based on a life cycle perspective rather than on the static perspective that dominates the literature in this area (e.g., Listokin et al 2001). Our estimates remain highly preliminary; indeed, while our best estimates are in the 1 percent to 1.5 percent range, it is easy to construct scenarios producing increases of between 0.5 percent and 2.0 percent.…”

Section: Introductionmentioning

confidence: 99%

Shared‐equity mortgages, housing affordability, and homeownership

Caplin¹,

Carr²,

Pollock³

et al. 2007

Housing Policy Debate

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Although the homeownership rate rose from 65 percent in 1995 to 69 percent in 2005, this rise appears difficult to sustain. We argue that the development of new shared-equity mortgages (SEMs) that blur the lines between debt and equity would propel further advances in homeownership. The rationale for these mortgages is that the broad financial markets would value shares in individual housing returns more highly than hard-pressed prospective homeowners do.We describe a new class of SEMs and provide survey evidence that most households would prefer them to interest-only and other currently popular mortgages. Financial simulations confirm the value of the securitized SEMs to investors. We present computations suggesting that an increase in the overall U.S. homeownership rate of between 1% and 1.5% would likely result from the development of SEM markets.

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The potential and limitations of mortgage innovation in fostering homeownership in the United States

Cited by 30 publications

References 28 publications

Low-income Homeownership: American Dream or Delusion?

Low-income Homeownership: American Dream or Delusion?

Assessing residents’ opinions on changes in a gentrifying neighborhood: A case study of the Alberta neighborhood in Portland, Oregon

Shared‐equity mortgages, housing affordability, and homeownership

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