Location‐Efficient Mortgages
Is the Rationale Sound
Bibliographic Data
| ID | 11684186 |
|---|---|
| Authors | Allen Blackman (0000-0003-3793-6120, Resources For The Future, corresponding author), Alan Krupnick (Resources For The Future) |
| Year | 2001 |
| Volume | 20 |
| Issue | 4 |
| Pages | 633-649 |
| Publication date | 2001-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Policy Analysis and Management (JOURNAL) |
| Journal identifiers | ISSN: 0276-8739 • E-ISSN: 1520-6688 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/pam.1021 |
| OpenAlex | W2028326761 |
| Language | EN |
| Citations received | 6 |
| References cited | 7 |
Location efficient mortgage (LEM) programs are an increasingly popular approach to combating urban sprawl. LEMs allow families who want to live in densely populated, transit‐rich communities to obtain a larger mortgage with a smaller down payment than traditional underwriting guidelines allow. LEMs are premised on the proposition that homeowners in such “location‐efficient” areas can safely be allowed to breach underwriting guidelines designed to prevent mortgage default because they have lower than average automobile‐related transportation expenses and more income available for mortgage payments. This paper employs records of more than 8000 FHA‐insured mortgages matched with data on various measures of location efficiency to test this proposition. The results suggest that it does not hold and that LEMs—like other low‐down‐payment mortgage programs—will raise mortgage default rates. This cost must be weighed against any potential anti‐sprawl benefits LEMs may have. © 2001 by the Association for Public Policy Analysis and Management
Actuarial science · Business · Collateralized mortgage obligation · Insurance policy · Land use · Mortgage insurance · Mortgage underwriting · Payment · Secondary mortgage market · Shared appreciation mortgage · Underwriting · Urban sprawl · Housing Market and Economics · Housing, Finance, and Neoliberalism · Urbanization and City Planning · Finance
Public policies for managing urban growth and protecting open space
Housing Choice Under Borrowing Constraints
Conceptualizing Location Efficiency
Revisiting location efficiency
Residential location, urban form, and household transportation spending in Greater Buenos Aires
Residential Location and Household Spending
| Unique citing works | 6 |
|---|---|
| Citations per year | 0,27 |
| Citation span | 2004 - 2024 (21) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 6 |