Financial Innovations and the Stability of the Housing Market. (November 2014)

• Record Type: Journal Article
• Authors: Allen, Franklin; Barth, James R.; Yago, Glenn
• Is Part Of: National Institute economic review. Volume 230:Number 1(2014)
• Page Start: R16
• Page End: R33
• Publication Date: 2014-11
• Subjects: mortgages -- housing finance institutions -- covered bonds -- securitisation; G01 -- G21 -- G23 -- G28; Economic history -- 1945- -- Periodicals; Economics -- Great Britain -- Periodicals; Great Britain -- Economic conditions -- 1945-1964 -- Periodicals; 330.941
• DOI: 10.1177/002795011423000103
• Languages: English
• ISSNs: 0027-9501

Abstract

Abstract : The recent crisis has underlined the importance of the interaction of financial innovations and the housing market. We consider five major innovations relevant to housing finance. These are (i) mortgages; (ii) specialised housing finance institutions; (iii) government interventions in housing finance in the US during the Great Depression; (iv) covered bonds; and (v) securitised mortgages. The history of these innovations and their positive and negative aspects are discussed. Future innovations to help the stability of the housing market are also suggested.