The Mortgage Market as a Stimulus Channel in the Covid-19 Crisis
Bibliographic Data
| ID | 21633787 |
|---|---|
| Authors | Edward Golding (Massachusetts Institute of Technology), Laurie S Goodman (Housing Finance Policy Center, Urban Institute, Washington, DC, USA, corresponding author), Richard Green (0000-0001-6141-5910, University of Southern California), Susan M Wachter (0000-0002-4462-1728, University of Pennsylvania), SUSAN WACHTER (Wharton School, University of Pennsylvania, Philadelphia, USA) |
| Year | 2021 |
| Volume | 31 |
| Issue | 1 |
| Pages | 66-80 |
| Publication date | 2021-01-02 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Housing Policy Debate (JOURNAL) |
| Journal identifiers | ISSN: 1051-1482 • E-ISSN: 2152-050X |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/10511482.2020.1850015 |
| OpenAlex | W3130668278 |
| Language | EN |
| Citations received | 2 |
| References cited | 11 |
The COVID-19 pandemic mortgage forbearance programs are valuable, providing relief to approximately 2 million homeowners. At the same time, aggressive Federal Reserve intervention has decreased mortgage rates substantially, encouraging refinancing. However, mortgage rates remain elevated, as the industry is capacity constrained, and mortgage underwriting has become more restrictive, limiting the potential gains to borrowers from the Fed’s actions. This article proposes a streamlined refinance program for Federal mortgages. We estimate the impact of this program, showing that it would reduce mortgage defaults by allowing approximately 3 million families to refinance, who would otherwise be unable to do so because of tight underwriting requirements. It would also provide a further stimulus of $53 billion per year to the economy
Business · Default · Economics · Financial crisis · Financial system · Forbearance · Foreclosure · General insurance · Insurance policy · Limiting · Macroeconomics · Monetary economics · Mortgage insurance · Mortgage underwriting · Secondary mortgage market · Shared appreciation mortgage · Subprime mortgage crisis · Underwriting · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism · Medicine · Finance
| Unique citing works | 2 |
|---|---|
| Citations per year | 1 |
| Citation span | 2024 - 2025 (2) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 2 |