Abstract
The housing market remains very vulnerable. We make the case that a sizeable supply/demand imbalance has been created by the fact that the housing market faces a huge overhang of homes from borrowers who are either not making mortgage payments or will be unable or unwilling to do so in the future. At the same time, 19% of 2007 borrowers would not qualify for a mortgage today by virtue of payment history alone. And the demand for home ownership has further contracted because credit availability is limited. Every single governmental action seems to be moving toward limiting credit availability further still. We strongly believe that investors are the key to increasing housing demand, and the best way to encourage this is to increase financing for investor properties.
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In this issue
Vital Role
Jump to section
- Article
- Abstract
- SIZING THE PROBLEM
- SUPPLY/DEMAND IMBALANCE
- TIGHTENING OF CREDIT STANDARDS
- GOVERNMENT POLICY—FURTHER TIGHTENING ALREADY TIGHT STANDARDS
- IMPLICATIONS—HOME PRICES
- PARTIAL SOLUTION #1—ANOTHER PLEA FOR PRINCIPAL REDUCTIONS
- PARTIAL SOLUTION #2—ENCOURAGING INVESTORS TO PARTICIPATE IN THE MARKET
- THE GOVERNMENT PROGRAM TO FACILITATE SALES OF REO PROPERTIES AND NPLS
- BULK SALES OF REO PROPERTIES AND NPLS
- FINANCING FOR INVESTOR PROPERTIES
- CONCLUSION
- Footnotes
- REFERENCES
- Info & Metrics
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