Journal Article
Long-term outcomes of FHA first-time homebuyers
Tracy, Joseph; Lee, Donghoon (2018-24-03)
The Federal Housing Administration (FHA), which insures mortgages for low- to moderate-income homebuyers, has stated that its goal is to foster sustainable homeownership. This study proposes metrics for evaluating the degree to which the FHA has succeeded in this mission for an important program constituency, first-time homebuyers. The approach uses data from the New York Fed?s Consumer Credit Panel, a data source that makes it possible to observe new mortgage borrowers? long-term outcomes. The findings presented in sample scorecards show, for example, that in the 2001 and 2002 cohorts, 55 ...
Economic Policy Review , Issue 24-3 , Pages 145-165

Report
Long-term outcomes of FHA first-time homebuyers
Lee, Donghoon; Tracy, Joseph (2018-02-01)
The Federal Housing Administration (FHA) has stated that its goal is to foster sustainable homeownership. In this paper, we propose some metrics for evaluating the degree to which the FHA is attaining this goal for first-time homebuyers. This work uses New York Fed Consumer Credit Panel data to examine the long-term outcome for households that make the transition from renting to owning using an FHA-insured mortgage. In addition to calculating the fraction of these borrowers whose FHA homeownership experience ends in default, we measure the degree to which these borrowers successfully remain ...
Staff Reports , Paper 839