CFDP 1934

Why Is Housing Finance Still Stuck in Such a Primitive Stage?


Publication Date: January 2014

Pages: 8


The institutions for financing owner-occupied housing have not progressed as they should, and the financial innovation that has followed the financial crisis of 2007-9 has not been focused on improving the risk management of individual homeowners. This paper lists a number of barriers to housing finance innovation, and in light of these barriers, the problems of some major innovations of the past and future: self-amortizing mortgages, price-level adjusted mortgages (PLAMs), shared appreciation mortgages (SAMs), housing partnerships, and continuous workout mortgages (CWMs).


Mortgages, Securitization, Financial crises, Self-amortizing mortgages, Installment mortgages, Level-payment mortgages, Price-level-adjusted mortgages (PLAMs), Shared appreciation mortgages (SAMs), Housing partnerships, continuous workout mortgages (CWMs), Automatic workout mortgages (AWMs), Dodd-Frank Act, Continuing Care Retirement Communities (CCRCs), Consumer Financial Protection Bureau (

JEL Classification Codes:  R31

See CFP: 1421