Foreclosure mitigation - Publications
While the preventive effect of loan modifications on mortgage default has been well-documented, evidence on the broad consequences of modifications has been fairly limited. Based on two unique loan-level data sets with borrower credit profiles, the study Borrower Credit Access and Credit Performance After Loan Modifications reports novel empirical evidence on how homeowners manage their credit before and after receiving modifications.
At least a dozen low-income apartment buildings exclusively for seniors in Detroit’s midtown and downtown areas could convert to market rate apartments in the next ten years, forcing hundreds of seniors to find new homes. Many of the senior apartment buildings were filled in the 1980s when few people wanted to live downtown. This article, in Chicago Fed's ProfitWise, Issue 2, 2016, explores community land trusts as a means to address affordable housing shortages and gentrification.
This edition of Research in Brief summarizes findings from “Information Losses in Home Purchase Appraisals,” a working paper from the Federal Reserve Bank of Philadelphia. Home purchase appraisals are required for any home mortgage guaranteed by a government-sponsored enterprise or the federal government, or a mortgage originated by a federally insured commercial bank or savings and loan institution. A home purchase appraisal is intended to provide an independent estimate of a home’s value, but 90 percent of appraisals have been at or above the agreed-upon offer price. This working paper examines the extent of information loss on home values in the appraisal process because of current property valuation methods.
Affordable housing now ranks among the top concerns facing communities in the Fourth District. Jobs and vacant properties round out the top three. The Spring 2015 edition of Issues & Insights features analysis of results from the Cleveland Fed’s annual community issues survey of stakeholders, along with innovative approaches being tried in communities across the District, which comprises Ohio, western Pennsylvania, eastern Kentucky, and the panhandle of West Virginia.
In the aftermath of the foreclosure crisis and subsequent tightening of mortgage credit, many households have turned to the rental housing market, increasing pressure on an already limited supply of low-cost units. Using the most recent data available, this February 2015 issue of Cascade Focus, published by the Philadelphia Fed, analyzes trends in rental housing affordability in the Third Federal Reserve District between 2007 and 2012.
The Cleveland Fed's policy journal, Forefront, examines how vacant, foreclosed properties cost creditors tends of millions of dollars, draw crime to neighborhoods, and drain municipalities' tax reserves. Can a fast-track process earn approval iin Ohio's state legislature? And can it help?
This Research Brief from the San Francisco Fed examines trends in rental housing composition in Arizona, California and Nevada and takes a closer look at local areas that have seen the fastest growth in single-family rentals. These three states were hit particularly hard by the foreclosure crisis and have major markets that have been impacted by investor purchases.
While appraisers have often been criticized for the inflated home values that were more prevalent during the housing boom, little research has been done to help understand how appraisal valuations respond to rapidly changing local market conditions and regulatory environments. In this discussion paper by the Philadelphia Fed’s Community Development Studies & Education department, researchers examine the pattern of appraisal bias in the Third Federal Reserve District during the housing crisis. Based on a unique transaction-level appraisal data set, this study evaluates how the lack of market activity, the concentration of foreclosures, and the increased use of appraisal management companies, as well as other factors, impact the incidence of low appraisals during the crisis.
The 12th District County Profiles, published by the San Francisco Fed, provide valuable information on the various labor-market, housing, and economic development issues impacting communities throughout the nine western states. More counties will be added in future rounds of profiles, so check back often to see if your community is featured!
Ever wonder about the Federal Reserve’s involvement in the field of community development? Wonder no more. Released in June 2014, Federal Reserve Community Development Perspectives: A summary of activities, insights, and future opportunities answers the "what," "why" and "how" of the Fed's role in community development. The report highlights the Fed’s recent efforts to address barriers to economic growth, and promote fair and informed access to financial markets. Featuring brief summaries of its community development work organized into four focus areas--people, place, the policy and practice of community development, and small business--the report includes background information that helps to provide context for this work, a sampling of key research, outreach programs and other initiatives, as well as some ideas on future challenges, needs and opportunities.