9 Pages Posted: 8 Jan 2014
Date Written: January 7, 2014
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).
Keywords: Mortgages, securitization, Financial crises, Self-amortizing mortgages, Installment mortgages, Level-payment mortgages, Price-level-adjusted mortgages (PLAMs), Shared appreciation mortgages (SAMs), Housing partnerships, continuous workout mortgages (CWMs), Automatic workout mortgages (AWMs)
JEL Classification: R31
Suggested Citation: Suggested Citation
Shiller, Robert J., Why is Housing Finance Still Stuck in Such a Primitive Stage? (January 7, 2014). Cowles Foundation Discussion Paper No. 1934. Available at SSRN: https://ssrn.com/abstract=2375757 or http://dx.doi.org/10.2139/ssrn.2375757
By Andrew Ang