Search Results
Journal Article
New guidelines promote sound credit risk management
Journal Article
Home-equity lending takes center stage
Journal Article
Have home equity loans survived the decline in home equity?
Journal Article
The golden years dilemma
With 3.2 million baby boomers eligible to retire this year, how many will be able to meet daily financial needs and still preserve home equity? The author advises seniors to plan carefully and learn about the many forms of assistance available.
Discussion Paper
Impending U.S. spending bust?: the role of housing wealth as borrowing collateral
Using data from the Panel Study of Income Dynamics, this paper considers the mechanism by which changing house values impact U.S. household spending. The results suggest that house values affect consumption by serving as collateral for households to borrow against to smooth their spending. The results show that the consumption of households who need to borrow against their home equity increases by roughly 11 cents per $1.00 increase in their housing wealth. Changing house values, however, have little effect on the expenditures of households who do not need to borrow to finance their ...
Discussion Paper
Did easy credit lead to economic peril?: home equity borrowing and household behavior in the early 2000s
Using data from the Panel Study of Income Dynamics, this paper examines how households' home equity extraction during 2001-to-2003 and 2003-to-2005 affected their spending and saving behavior. The results show that a one-dollar increase in equity extraction led to ninety-five or ninety-eight cents higher consumption expenditures. Nearly all of this spending increase was reversed in the subsequent period. A fair amount of these expenditures went toward home improvements and repairs. In addition, households used home equity to help finance their purchases of used cars. Equity extraction also ...
Journal Article
Determining Coverage Under HOEPA
The Home Ownership Equity Protection Act (HOEPA) identifies a class of high-cost home equity loans through rate and fee triggers.
Journal Article
Changes to Regulation Z Expand Loans Subject to HOEPA
The Home Ownership Equity Protection Act (HOEPA) was enacted in response to anecdotal evidence of abusive practices in the home equity lending market. The regulation that implements HOEPA, Regulation Z, has undergone several changes, including how creditors determine if a loan is covered under the act. Compliance with the expanded HOEPA rules is mandatory as of Oct. 1, 2002.
Journal Article
Home equity lending: boon or bane?
Working Paper
Sources and uses of equity extracted from homes
In this paper, we present estimates of the disposition of the free cash generated by home equity extraction to finance consumer spending, outlays for home improvements, debt repayment, acquisition of assets, and other uses. We estimate free cash as cash available net of closing costs and repayment of other mortgage debt. We also have extended the quarterly data series for gross equity extraction, presented in our earlier paper, back to 1968.