Paper #1217

Título:

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

Autores:

Benito Arruñada y Amnon Lehavi

Data:

Mayo 2010

Resumen:

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".

Palabras clave:

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

Códigos JEL:

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

Área de investigación:

Economía de la Empresa y Organización Industrial / Finanzas y Contabilidad

Publicado en:

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

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