COVID-19 exposes mortgage market vulnerabilities that led to volatility, Fed intervention
The COVID-19-induced financial market shock in March 2020 significantly disrupted the market for agency mortgage-backed securities.
February 02, 2021
Does homeownership provide an escape from high rent burdens?
Many first-time homebuyers—often with little savings and vulnerable to economic shocks—obtain their mortgages through the Federal Housing Administration (FHA) loan program. Often, these borrowers are moving from apartments and have presumably weighed the costs of renting versus owning.
January 05, 2021
Southwest Economy, Fourth Quarter 2020
COVID-19 Fuels Sudden, Surging Demand for Suburban Housing
Pandemic-related actions have helped propel a sudden, large shift from renting to homeownership and a concurrent movement to the suburbs and larger homes.
December 21, 2020
Highly indebted FHA borrowers at special risk as COVID-19 forbearance ends
The situation appears most urgent for those borrowers who entered the crisis with a high debt load and little room to financially navigate without forbearance.
September 29, 2020
Ability to repay a mortgage: Assessing the relationship between default, debt-to-income
The Consumer Financial Protection Bureau has announced that it intends to change the definition of a “qualified mortgage.” Specifically, the CFPB proposes to reconsider the use of a borrower's debt-to-income ratio as a measure of the ability to repay a loan.
March 24, 2020
The long road to housing finance reform: 'Are we there yet?'
Over the past decade, broad-based legislative reforms for housing finance have proven elusive. However, reflecting lessons from the financial crisis, a political consensus has emerged on how Fannie Mae and Freddie Mac should operate.
February 04, 2020
After the bust, the long road to housing finance reform
The Treasury recently released a plan proposing several administrative and legislative changes aimed at returning Fannie Mae and Freddie Mac to the private sector after more than a decade of federal control.
January 14, 2020
Large, dominant firms depress local wages; housing costs help offset lower pay
Concern has increased about the ability of very large firms to exert market power and hold down wages in localities where they dominate.
January 07, 2020
Southwest Economy, Fourth Quarter 2019
Gentrification Transforming Neighborhoods in Big Texas Cities
An influx of new, affluent residents has descended on gentrifying neighborhoods around Texas’ four largest cities, while increasing housing costs have led some low-income households and at-risk populations to locate in more suburban areas.
December 30, 2019