摘要:

Government‐guaranteed mortgage loans (GFRMs) and adjustable‐rate mortgages (ARMs) were introduced to make payment to income (PTI) and loan‐to‐value (LTV) qualification conventions less restrictive. This paper analyzes the effect of GFRMs and ARMs on the demand for housing. Using a large national data set for the 1988 to 1989 period, we employ a two‐stage procedure to estimate housing demand. In the first stage, a multinomial logit model estimates the probability of choosing an FRM, ARM or GFRM. Predicted values from the logit are used to construct user costs and estimate housing demand. Using the model estimates, we simulate demand under four different mortgage availability regimes: FRM, FRM and GFRM, FRM and ARM and all three. These simulations indicate that GFRMs, by relaxing LTV constraints, increase housing demand by approximately 6.2% relative to the FRM regime; the addition of ARMs, by relaxing both PTI and LTV constraints, raises demand by an additional 6%, for a total of 12.2% with inclusion of all alt

ISSN:1080-8620    

DOI:10.1111/1540-6229.00643

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper is directed to a neglected aspect of the problem of home ownership affordability: the impact on affordability of temporary buy downs. A temporary buydown is an option offered to home buyers to reduce the mortgage payment in the early years of the loan. The borrower allocates cash up front to an escrow account from which funds are withdrawn monthly to supplement the borrower's mortgage payment.Temporary buydowns are underused partly because of the difficulty of determining whether, in any particular case, they will increase affordability. This paper develops a new instrument called the maximum affordable mortgage (MAX) which automatically allocates the buyer's available cash between buydown, down payment and other uses in a manner which maximizes affordability for the buyer, subject to whatever underwriting constraints the investor wishes to impose on payment graduation and/or the total size of the buydown.The lender originating the MAX must be able to solve a complex algorithm at the point of sale, but the complexity is all behind the scenes. Using a computer, a loan officer can quickly find the cash allocation that maximizes affordability. The power of the MAX in increasing affordability may be enhanced if it is combined with a buyup wherein the lender trades off lower points against a higher rate.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00644

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Using a multiproduct translog cost function, this paper examines the case for economies of scope and density in the market for residential real estate brokerage services. Earlier research that treated output as a homogeneous commodity reported modest economies of scale for this industry. The results of this study suggest that the composition of output is an important source of these scale economies, rather than simply the size of the firm. The economies of scope which we find imply that a balanced mix of listing and sales is the least costly type of operation, a result borne out by the product mix found in our sample. The results also show product‐specific diseconomies of scale, suggesting that specialization in either listing or sales may be sub‐optimal under the current institutional arrangements present in the market. Finally, market density appears to be, at best, only a nominal source of savings for real estate brokerage fi

ISSN:1080-8620    

DOI:10.1111/1540-6229.00645

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper examines the relationship between a Real Estate Investment Trust's (REIT's) stock returns and top management changes. The results indicate an inverse relationship between the probability of a management change and a REIT's recent stock price performance. This is consistent with internal monitoring of management activities by the board of directors, other top managers, or large block shareholders.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00646

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper examines the effect of a zoning change on the land market in McHenry County, Illinois. One question addressed is whether zoning “follows the market.” It is found that, for agricultural land, zoning does tend to follow the market. In addition, the effect of land prices on land use is examined. The results here, however, are mixed. In the initial years after the zoning change, a high relative price of residential land increases the probability that a parcel will be zoned residential. However, several years later, a high relative price of residential land decreases the probability that a parcel is zoned residential. This result suggests that it may take some time for a zoning change to have a significant impact on the local land mar

ISSN:1080-8620    

DOI:10.1111/1540-6229.00647

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper analyzes the opportunity for early termination of a mortgage contract. We consider the possibility of defaulting on the property and explore the rules that are used by a value‐maximizing borrower in exercising this option to default. The discussion centers on the value of waiting to make such a decision and the consequences of this rational inertia. We show that the observed delay in default usually attributed to transaction costs can instead be explained as entirely rational choice in a dynamic environmen

ISSN:1080-8620    

DOI:10.1111/1540-6229.00648

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

ISSN:1080-8620    

DOI:10.1111/1540-6229.00642

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY