Paper #1217

Títol:

Prime property institutions for a subprime era: Toward innovative models of homeownership

Autors:

Benito Arruñada i Amnon Lehavi

Data:

Maig 2010

Resum:

This Article breaks new ground toward contractual and institutional innovation in models of homeownership, equity building, and mortgage enforcement. Inspired by recent developments in the affordable housing sector and other types of public financing schemes, we suggest extending institutional and financial strategies such as time- and place-based division of property rights, conditional subsidies, and credit mediation to alleviate the systemic risks of mortgage foreclosure. Two new solutions offer a broad theoretical basis for such developments in the economic and legal institution of homeownership: a for-profit shared equity scheme led by local governments alongside a private market shared equity model, one of "bootstrapping home buying with purchase options".

Paraules clau:

property, homeownership, mortgage, finance, local government, subsidy, tax.

Codis JEL:

D23, E62, H31, H71, K11, R31.

Àrea de Recerca:

Economia de l'Empresa i Organització Industrial / Finances i Comptabilitat

Publicat a:

Berkeley Business Law Journal, 8(1), 2011.

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