Publications

  • Quarterly Housing Update 2011: 3rd Quarter

    In an analysis of third quarter housing indicators, The Furman Center finds that home sales volume remained low in the third quarter of 2011, with the number of properties sold citywide four percent lower than the number sold in the third quarter of 2010. Property values are also lagging in most of the city. Manhattan is the only borough where properties have appreciated in price over the last year. The Quarterly Housing Update is unique among New York City housing reports because it incorporates sales data, residential development indicators, and foreclosures. It also presents a repeat sales index for each borough to capture price appreciation while controlling for housing quality.

  • Loan Modifications: What Works

    We use a unique dataset that combines data on loan, borrower, property, and neighborhood characteristics of modified mortgages on properties in New York City to examine the determinates of successful modifications. From November 2007 through March 2011, over 2.1 million mortgages were modified in the United States, and policymakers have heralded such modifications as a key to addressing the ongoing foreclosure crisis. This dataset includes both HAMP modifications and proprietary modifications. The analysis builds upon a prior paper in which the determinants of loan modifications were examined.

  • Determinants of the Incidence of Loan Modifications

    Loan modifications ensure that borrowers avoid foreclosure and save their credit record. These modifications are also beneficial to the neighborhoods in which these borrowers reside, preventing vacancies and high rates of turnover. This analysis looks at loan delinquency and repayment plan data from New York City borrowers to provide the strongest predictors of modifications or liquidation of property. In this paper, we answer key questions about loan modifications, including how the identity, property or neighborhood of the borrower affects the likelihood of receiving a modification. We also look at the role of residential segregation, as well as the identity of the loan’s servicer as an influence on variations in borrower access to loan modifications.

  • Navigating Uncertain Waters: Mortgage Lending in the Wake of the Great Recession

    This report summarizes our February 4, 2011 Roundtable of the same name, and provides an in-depth exploration of credit availability and lending patterns during the recession.

  • New York City Quarterly Housing Update 2011: 2nd Quarter

    In an analysis of second quarter housing indicators, the Furman Center finds that home sales volume declined 20 percent from the first to the second quarter of 2011, although home prices citywide held steady. The report also finds that new construction is slowly starting to return with 1,556 units authorized by new residential building permits between January and June 2010, compared with 1,703 units authorized in all of 2010.

  • The Role of Neighborhood Characteristics in Mortgage Default Risk: Evidence from New York City

    We construct a database of non-prime hybrid adjustable and fixed rate mortgages from New York City that augments a rich set of loan and borrower risk characteristics with a variety of census tract level neighborhood characteristics. We find that these neighborhood characteristics are important for default behavior, even after an extensive set of controls. First, default rates increase with the rate of foreclosure notices and the number of lender-owned properties (REOs) in the tract. Second, default rates for home purchase mortgages are higher in predominantly black tracts, regardless of the borrower’s own race. We explore possible explanations for our findings.

  • The American Mortgage System: Crisis and Reform

    The Secondary Mortgage Market for Housing Finance in the United States: A Brief Overview

    Understanding both the current problems in the secondary market and the proposed solutions requires an understanding of the role of the secondary mortgage market in U.S. housing finance. In this chapter, the authors focus in particular on the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, which for decades were the largest players in the U.S. system. The authors conclude that while the described weaknesses within the chapter are important, and the structure of the GSE’s should surely be improved, it would be a mistake to assume that simply reforming the GSEs, without making significant reforms to the private-label market, would prevent another crisis.


    The Community Reinvestment Act: Evaluating Past Performance and Reviewing Options for Reform

    The passage of the Community Reinvestment Act (CRA) in 1977 set in motion a bold experiment that has yet to achieve its full potential. This chapter analyzes the strengths and weaknesses of implementation of the CRA over the last 33 years and provides potential directions for reform, one of which recommends that the Obama administration designate one agency to take the lead and give the agency a tight timetable, sufficient staffing and analytic resources, and the authority to resolve disputes. While reform may also involve legislation, it is important to make sure that it does not become overly prescriptive and stifle innovation. The banking world will continue to evolve, as will the best ideas on how to revitalize and strengthen communities.


    Improving U.S. Housing Finance Through Reform of Fannie Mae and Freddie Mac: A Framework for Evaluating Alternatives

    This chapter lays out criteria for evaluating proposals for reform of Fannie Mae and Freddie Mac. The authors introduce the basic goals of a healthy secondary market for both the single-family and multi-family markets, which include access to liquid credit markets nationwide, countercyclical stability and availability of safe products that are reasonably priced and clearly understood by borrowers and investors.The authors also offer a framework that will help describe and understand the different proposals for reform and how variants of Fannie and Freddie might fit into that picture. As federal government officials contemplate the future of these two entities, the authors hope that this chapter offers a useful framework to use in evaluating the alternative proposals.

  • New York Quarterly Housing Update 2011: 1st Quarter

    In an analysis of first quarter housing indicators, the Furman Center finds that housing prices declined between the last quarter of 2010 and the first quarter of 2011 in every borough except Queens, where prices remained essentially flat. The volume of home sales continued to decline in every borough compared to the previous year. The Quarterly Housing Update is unique among New York City housing reports because it incorporates sales data, new construction indicators, and foreclosures. It also presents a repeat sales index for each borough to capture price appreciation while controlling for housing quality.

  • Foreclosure and Kids: Does Losing Your Home Mean Losing Your School?

    The second in a two-part series on the effects of the foreclosure crisis on children, this report addresses the relationship between foreclosure and student mobility. New York University’s Institute for Education and Social Policy (IESP) and Furman Center for Real Estate and Urban Policy find that New York City public school students living in buildings entering foreclosure are more likely to switch schools than their peers, less likely to leave the school system, and that their new schools tend to be lower performing than the ones they left.

  • Does Losing Your Home Mean Losing Your School?:  Effects of Foreclosures on the School Mobility of Children

    In the last few years, millions of homes around the country have entered foreclosure, pushing many families out of their homes and potentially forcing their children to move to new schools. Unfortunately, despite considerable attention to the causes and consequences of mortgage defaults, we understand little about the distribution and severity of these impacts on school children. This paper takes a step toward filling that gap through studying how foreclosures in New York City affect the mobility of public school children across schools. A significant body of research suggests that, in general, switching schools is costly for students, though the magnitude of the effect depends critically on the nature of the move and the quality of the origin and destination schools.