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Articles 1 - 12 of 12

Full-Text Articles in Real Estate

Transparency In The Mortgage Market, Andrey Pavlov, Susan M. Wachter, Albert Zevelev Jun 2016

Transparency In The Mortgage Market, Andrey Pavlov, Susan M. Wachter, Albert Zevelev

Real Estate Papers

This paper studies the impact of transparency in the mortgage market on the underlying real estate market. We show that geographic transparency in the secondary mortgage market, which implies geographic risk based pricing in the primary market, can limit risk-sharing and make house prices more volatile. Ex ante, regions prefer opaque markets to enable insurance opportunities. We discuss the implications for risk based pricing and house price volatility more generally. In addition, we investigate the specific conditions under which competitive lenders would optimally choose to provide opaque lending, thus reducing volatility in the real estate market. We show that in ...


Baker Viewpoint: Curtailment Mortgages Are A Win-Win Economic Policy, Jason Henderson, Matthew Farrell Jun 2016

Baker Viewpoint: Curtailment Mortgages Are A Win-Win Economic Policy, Jason Henderson, Matthew Farrell

Cornell Real Estate Review

What happens if you prepay your standard residential mortgage? This question puzzles most people, and worse yet the answer can be even more confusing. However, a minor policy change that alters how prepayments are applied could benefit mortgage borrowers as well as the overall housing market.


Constitutional Constraints On Using Eminent Domain To Write-Down Underwater Mortgages, Jacob R. Shelton Jun 2015

Constitutional Constraints On Using Eminent Domain To Write-Down Underwater Mortgages, Jacob R. Shelton

Cornell Real Estate Review

Beginning in 2007, the U.S. economy was hit with a series of damaging financial blows, the negative repercussions of which still affect Americans today. In years prior thereto, various economic and political factors worked in unison to artificially inflate the selling price of residential homes within many U.S. markets.1 When the market could stand no more inflation, the metaphorical bubble burst, sending the banking, investment, and mortgage industries into a downward tailspin.


Can Short-Term Rental Arrangements Increase Home Values? A Case For Airbnb And Other Home Sharing Arrangements, Jamila Jefferson-Jones Jun 2015

Can Short-Term Rental Arrangements Increase Home Values? A Case For Airbnb And Other Home Sharing Arrangements, Jamila Jefferson-Jones

Cornell Real Estate Review

The sharing economy or “new economy”1 has redefined consumption in the housing context in a manner that impacts traditional notions regarding home values and neighborhood integrity. Housing sharing allows owners to share some of the benefits of property ownership – namely use and enjoyment2 – while shifting some of the burdens of ownership – particularly, the economic burdens. With the advent of the sharing economy, there is a brewing conflict between this new economy and the realities of economic regulation. Thus, in the housing context, we see this conflict playing out in the tension between growing patterns of home sharing and ...


New York City’S Annual Income And Expenses: Statement Filing Requirement – A Land Mine For The Unwary Purchaser Or Owner Of Real Property, Ryan A. Mccaffrey, Albert D. Lichy Jul 2014

New York City’S Annual Income And Expenses: Statement Filing Requirement – A Land Mine For The Unwary Purchaser Or Owner Of Real Property, Ryan A. Mccaffrey, Albert D. Lichy

Cornell Real Estate Review

Since 1986, New York City law has required owners of incomeproducing properties in New York City to file an annual income and expense statement, colloquially referred to as an RPIE statement, with the Department of Finance. The general purpose of an RPIE statement is to assist the Department of Finance in assessing the value of income-producing properties.1 To this end, the owners of income-producing properties are required to submit annually a statement that outlines “all income derived from and all expenses attributable to the operation of such property.”2 Despite the draconian penalties for non-compliance - ranging from 3% to ...


Parallels Between The U.S. And Asian Property Markets, Singapore Management University May 2013

Parallels Between The U.S. And Asian Property Markets, Singapore Management University

Perspectives@SMU

U.S. home prices are on an upswing. What does this mean for the Asian property market?


Greenbacks For Building Green: Does A Lender For Sustainable Construction Projects Need To Make Adjustments To Its Current Practices?, Darren Prum Jan 2013

Greenbacks For Building Green: Does A Lender For Sustainable Construction Projects Need To Make Adjustments To Its Current Practices?, Darren Prum

Darren A. Prum

In the development of real property, the availability of money to secure construction resources becomes an important factor for success. The construction loan plays a central role in providing funds to erect a building on real property, but a lender faces numerous exposures that might result in a loss. In evaluating a project to determine its viability and to uncover any exposure it might present, a lender will conduct an extensive underwriting review process and will use mitigation techniques through the construction loan agreement and disbursement requirements to reduce the perceived risks to an acceptable business level, for those developments ...


Hamp: Doomed From The Start, Marc Gans Jul 2012

Hamp: Doomed From The Start, Marc Gans

Cornell Real Estate Review

The collapse of the American housing market has had deleterious effects on not only the U.S. economy, but also the global economy, plunging much of the world into the worst financial crisis since the Great Depression.


How Dismantling Fannie Mae And Freddie Mac Will Affect The Future Of The Multifamily Market, David Shlom, Andrew Benioff Jul 2011

How Dismantling Fannie Mae And Freddie Mac Will Affect The Future Of The Multifamily Market, David Shlom, Andrew Benioff

Cornell Real Estate Review

On February 11, 2011 the US Treasury published a white paper announcing the future dismantling of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.1 This white paper, “Reforming America’s Housing Finance Market,” was a result of the government bailout and conservatorship of the GSEs. While both GSEs are well known for their role in residential real estate, their recent involvement in multifamily real estate is less apparent. The purpose of this report is twofold: First to explain the role GSEs have played in the multifamily mortgage market; and second to postulate the effect their non-participation will have ...


The Other Side Of The White Picket Fence, Robert Bridges, Michael Kianmahd Jul 2011

The Other Side Of The White Picket Fence, Robert Bridges, Michael Kianmahd

Cornell Real Estate Review

[Excerpt] At the risk of heaping more misery on the struggling residential property market, an analysis of home price and ownership data for period of the last 30 years in California - the golden state with notoriously golden property prices – shows that the average single family house has not been a particularly stellar investment. Over that period, a typical homebuyer would have been wise to learn a thing or two about disciplined investing, and would have been better advised to consider putting his or her money elsewhere if the goals were to build net worth and financial security. The popular misconception ...


Redefining Distressed Opportunities, Ben Carlos Thypin Jul 2010

Redefining Distressed Opportunities, Ben Carlos Thypin

Cornell Real Estate Review

[Excerpt] As the commercial real estate (CRE) industry embarks on a new year and hopes to put the pain of 2009 behind it, industry players should keep in mind that much of the wreckage left in the wake of the world financial crisis remains unresolved and billions of dollars in looming CRE loan maturities further cloud the outlook. By the end of Q1 2010, nearly $222 billion worth of CRE was distressed, of which $27 billion had been resolved. At the beginning of 2009, many predicted that a flood of distressed assets would be coming to market and hundreds of ...


Mortgage Prepayment And Default Behavior With Embedded Forward Contract Risks In China’S Housing Market, Yongheng Deng, Peng Liu Apr 2009

Mortgage Prepayment And Default Behavior With Embedded Forward Contract Risks In China’S Housing Market, Yongheng Deng, Peng Liu

Articles and Chapters

Most condominiums in China are sold forward on a pre-sale market, where purchasers and developers transact on an underlying property that is not yet completed. During the pre-sale period home buyers face a significant forward contract risk. However, home buyers can borrow mortgages from banks so that they can effectively share the forward contract risk with banks. This explains the phenomenon of irregularly high early-stage default and prepayment rates observed in residential mortgage lending in China, where there are few, if any, financial incentives for mortgage borrowers to exercise either put or call options. Mortgages collateralized by forward housing assets ...