Why is Housing Finance Still Stuck in Such a Primitive Stage?
Cowles Foundation for Research in Economics Yale University
Download Document| Date Published | 2014 |
| Version | |
| Primary Author | Robert Shiller |
| Other Authors | |
| Theme | Mortgage Products, Housing Finance Education and Research |
| Country |
Abstract
The institutions for financing owner-occupied housing have not progressed as they should, and the financial innovation that has followed the financial crisis of 2007-9 has not been focused on improving the risk management of individual homeowners. This paper lists a number of barriers to housing finance innovation, and in light of these barriers, the problems of some major innovations of the past and future: self-amortizing mortgages, price-level adjusted mortgages (PLAMs), shared appreciation mortgages (SAMs), housing partnerships, and continuous workout mortgages (CWMs).