Housing Market Policy Options

In: Housing Issues, Laws and Programs

Abstract

Intro -- HOUSING MARKET POLICY OPTIONS -- HOUSING MARKET POLICY OPTIONS -- CONTENTS -- Preface -- Chapter 1 Ramifications of Housing Market Policy Options -- Summary -- Introduction -- The Size of the Housing Problem -- Principal Reduction -- Risks of Principal Reduction -- Potential Impact of Principal Reduction -- Housing Market -- Consumer Spending -- Financial Sector -- Current Principal Reduction Policies -- Non-GSE Loans: The Home Affordable Modification Program's Principal Reduction Alternative and the 2012 Mortgage Settlement -- Fannie and Freddie's Position on Principal Reduction -- Legislative Proposals for Principal Reduction -- Large-Scale Refinancing -- Barriers to Refinance -- Potential Impact of Large-Scale Refinancing -- Housing Market -- Consumer Spending -- Financial Sector -- The Home Affordable Refinance Program -- Presidential and Legislative Proposals for Refinancing -- Renting Foreclosed Homes -- Barriers to Renting -- Potential Impact of Rental Program -- Housing Market -- Financial Sector -- Consumer Spending -- FHFA Pilot Program -- Legislative Proposals for Renting REO -- End Notes -- Chapter 2 The U.S. Housing Market: Current Conditions and Policy Considerations -- INTRODUCTION -- HOUSING MARKET CONDITIONS -- House Prices and Implications for Household Wealth -- Mortgage Credit Conditions -- Addressing Foreclosed Properties: REO to Rental -- Background -- Characteristics of REO Properties -- REO to Rental Program Design -- The Role of Banks -- Land Banks: An Option for Low-Value Properties -- Credit Access and Pricing -- Addressing Homeowners at Risk of Default or Foreclosure -- Obstacles to Refinancing -- Loan Modifications and the HAMP Program -- Loan Modifications with Principal Reduction -- Alternatives to Foreclosure -- Mortgage Servicing: Improving Accountability and Aligning Incentives -- CONCLUSION