Date of this Version
Housing Policy Debate
This article documents the growth and geographic distribution of nontraditional mortgages (NTMs) and subprime mortgages during 2000-2006, and examines the association between these products and homeownership at the county level between 2000 and 2012. It finds a significant relationship between the origination of NTM and subprime mortgages during the boom and changes in the number of homeowners (positive during the 2000-2006 period and negative during the 2006-2012 period) but no significant relationship with the change in the homeownership rate. Looking at specific categories of the population, the results indicate a positive relationship between the presence of NTMs and subprime mortgages and increased numbers of homeowners for young households as well as for low income and minority households, but the relationship is smaller than for the general population. Overall, the relationship between NTMs and homeownership is stronger than the relationship between subprime mortgages and homeownership during the boom and it is less negative during the bust.
This is an Accepted Manuscript of an article published by Taylor & Francis in Homeownership and Nontraditional and Subprime Mortgages on 2017, available online: http://wwww.tandfonline.com/10.1080/10511482.2016.1249003.
homeownership, subprime mortgages, nontraditional mortgages, credit
Acolin, A., An, X., Bostic, R. W., & Wachter, S. (2017). Homeownership and Nontraditional and Subprime Mortgages. Housing Policy Debate, 27 (3), 393-418. http://dx.doi.org/10.1080/10511482.2016.1249003
Date Posted: 27 November 2017
This document has been peer reviewed.