Скачать или смотреть Highlights: Foreclosure Costs and Mortgage Modification During the Great Recession

Highlights from Stuart Gabriel's presentation at the 2017 Rena Sivitanidou Annual Research Symposium. Watch the full version here:    • Foreclosure Costs and Mortgage Modificatio...  

Session 7
Presenter: Stuart Gabriel, UCLA
Discussant: David Zeke, USC

We investigate the housing and broader economic effects of the 2000s crisis-period California Foreclosure Prevention Laws (CFPLs). The CFPLs encouraged lender mortgage modifications by substantially increasing the pecuniary and time costs of foreclosure. Results show that the CFPLs prevented 124,000 California foreclo- sures, increased house prices by 6.2 percent, and created $310 billion of housing wealth. Findings further indicate that gains in housing wealth translated into in- creased durable consumption. Disaggregated estimates reveal that the CFPL house price increases were markedly higher in the hard-hit areas of Southern California. Al- together, the CFPLs were highly effective in mitigating foreclosures and stabilizing housing markets.

The 2017 Rena Sivitanidou Annual Research Symposium features a panel of leading scholars in real estate economics drawn from academic institutions. The Lusk Center welcomes scholars from the University of Wisconsin, University of Illinois, New York University, Northwestern University, University of Toronto, UCLA, and the University of Southern California. These academics share their recent findings and opinions on real estate finance and the role of banks and securitization markets; how people form their beliefs about housing market and the impact of those beliefs on housing markets.

Hosted by the USC Lusk Center for Real Estate
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