Search Results
Showing results 1 to 10 of approximately 35.
(refine search)
Journal Article
Consumer debt and home equity borrowing
Journal Article
States fight predatory lending in different ways
As the laws vary from state to state, so does their impact. In some states, the high-cost mortgage business appears to have shrunk. But in other states, the opposite has occurred.
Journal Article
Home equity and household income
During 1995-2007, home equity increased more than gross income for high-, low- and middle-income groups.
Working Paper
Reverse mortgage loans: a quantitative analysis
Reverse mortgage loans (RMLs) allow older homeowners to borrow against housing wealth without moving. In spite of growth in this market, only 2.1% of eligible homeowners had RMLs in 2011. In this paper, we analyze reverse mortgages in a life-cycle model of retirement, calibrated to age-asset profiles. The ex-ante welfare gain from RMLs is sizable at $1,000 per household; ex-post, low-income, low-wealth and poor-health households use them. Bequest motives, nursing-home moving risk, house price risk, and interest and insurance costs all contribute to the low take-up rate. The model predicts ...
Working Paper
Does it pay to read your junk mail? evidence of the effect of advertising on home equity credit choices
We examine the effect of direct mail (commonly referred to as junk mail) advertising on individual financial decisions by studying consumer choice of home equity debt contracts. Consistent with the theoretical predictions, we find that financial variables underlying the relative pricing of debt contracts are the leading factors explaining consumers home equity debt choice. Furthermore, we also find that the intended use of debt proceeds significantly impacts consumer choice. However, when we study a subset of consumers who received a direct mail solicitation for a particular debt contract ...
Journal Article
Home equity lending: evidence from recent surveys
Journal Article
New guidelines promote sound credit risk management
Journal Article
Home-equity lending takes center stage
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
Amendment effective June 7, 1989