FHA lending activity in the past decade: a national overview
The Federal Housing Administration (FHA), which provides insurance for residential mortgage loans, was established by the National Housing Act of 1934 to stimulate housing demand and, in turn, demand for those who build housing. In the housing boom after World War II, FHA loans helped make mortgage credit more widely available to returning veterans. In recent decades, the FHA, which is now part of the Department of Housing and Urban Development (HUD), has disproportionately served first-time homebuyers as well as low- and moderate-income (LMI) and minority households. The FHA allows low down ...
The quality of FHA lending in Pennsylvania, New Jersey, and Delaware
The Federal Housing Administration (FHA), an agency within the Department of Housing and Urban Development (HUD), insures mortgage loans made by private lenders. All FHA-insured borrowers pay mortgage insurance as one of the terms of their mortgage loan, and this insurance protects the lender against losses if the borrower defaults. In addition to providing a mortgage guarantee, the FHA single-family loan program has features such as a low down payment and a low minimum credit score that benefit borrowers who may not be able to obtain financing in the conventional market. Because of the FHA?s ...
Affordability and availability of rental housing in Pennsylvania
The Community Affairs Department of the Federal Reserve Bank of Philadelphia undertook this study, Affordability and Availability of Rental Housing in Pennsylvania, to assess the housing needs of Pennsylvania's lower-income renter households and to better understand how their needs vary across the state. Our study looks at the incidence of housing problems among this group at both the beginning and the middle of the current decade. It also considers the extent to which there were shortages in the number of rental units that were both affordable and available to lower-income renters at these ...
“Forced Automation” by COVID-19? Early Trends from Current Population Survey Data
This empirical study evaluates whether COVID-19 and the threat of future pandemics has expedited the process of automation in the U.S. The results suggest that the pandemic displaced more workers in automatable occupations, putting them at a greater risk of being permanently automated. The automatable jobs that are more vulnerable to the pandemic include jobs that do not permit remote work, have a high risk of COVID-19 transmission, or are in the most affected sectors. While most of the job losses during the pandemic are expected to be temporary, a replication of the analysis for the Great ...
The Community Reinvestment Act (CRA) and Bank Branching Patterns
This paper examines the relationship between the Community Reinvestment Act (CRA) and bank branching patterns, measured by the risk of branch closure and the net loss of branches at the neighborhood level, in the aftermath of Great Recession. Between 2009 and 2017, there was a larger decline in the number of bank branches in lower-income neighborhoods than in more affluent ones, raising concerns about access to mainstream financial services. However, once we control for supply and demand factors that influence bank branching decisions, we find generally consistent evidence that the CRA is ...
Effects of the Community Reinvestment Act (CRA) on Small Business Lending
This study provides new evidence on the effectiveness of the Community Reinvestment Act (CRA) on small business lending by focusing on a sample of neighborhoods with changed CRA eligibility status across the country because of an exogenous policy shock in 2013. The results of difference-in-differences analysis provide consistent evidence that the CRA promotes small business lending, especially in terms of number of loan originations, in lower-income neighborhoods. The generally positive effects of the CRA are sensitive to the types of CRA treatment. Losing CRA eligibility status has a ...
EXPLORING A SKILLS-BASED APPROACH TO OCCUPATIONAL MOBILITY
Our work is motivated by two concepts: first, that economic mobility could be improved by greater opportunities for occupational mobility, particularly out of lower-wage employment, and second, that a skills-based approach to occupational mobility could uncover potential transitions that may not be obvious when only considering more traditional qualifications such as years of directly relevant experience or higher levels of formal education.
Student Debt Loan in Philadelphia
As of December 1, 2018, approximately 310,320 Philadelphians collectively owed $11.6 billion in student loan debt. The share of adults with student loan debt is greater in Philadelphia (25.3 percent) than in Pennsylvania (21.2 percent) and in the United States as a whole (17.3 percent). This report provides an in-depth analysis of the geographic distribution of this debt in Philadelphia. It reveals that individuals in different zip codes have drastically different experiences in how much they owe, the degree to which they struggle with repayment, and the extent to which they become ...
GENDER DISPARITIES IN FINANCIAL WELL-BEING: from the Survey of Household Economics and Decisionmaking
This report analyzes gender differences with respect to individuals’ banking habits, credit access, and retirement planning from the Federal Reserve Board’s 2018 Survey of Household Economics and Decisionmaking (SHED).
HOUSEHOLD RENTAL DEBT DURING COVID-19
COVID-19 and associated economic shutdowns have led to unprecedented job losses, with up to 20 million households and 24 million individuals experiencing an unemployment spell between March 2020 and August 2020.1 The scale of these losses, their disproportionate impact on lower-income workers, and the uncertain timeline of economic recovery have raised concerns about the ability of households to maintain rent payments while out of work.