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Why is Housing Finance Still Stuck in Such a Primitive Stage?

9 Pages Posted: 8 Jan 2014  

Robert J. Shiller

Yale University - Cowles Foundation; National Bureau of Economic Research (NBER); Yale University - International Center for Finance

Date Written: January 7, 2014

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).

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

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

Robert J. Shiller (Contact Author)

National Bureau of Economic Research (NBER) ( email )

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Yale University - International Center for Finance ( email )

Box 208200
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United States
203-432-3708 (Phone)
203-432-6167 (Fax)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3708 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://www.econ.yale.edu/~shiller/

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