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Research Theme: Housing & Homelessness

Includes social and real-estate implications of homelessness, housing affordability and livability in the built environment

Mortgage Loan Costs: Magnitude and Drivers of Variation

Arthur Acolin & Rebecca J. Walter (2023). Mortgage Loan Costs: Magnitude and Drivers of Variation. Housing Policy Debate, DOI: 10.1080/10511482.2023.2236984

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Abstract

This article uses national data disclosed as part of the Home Mortgage Disclosure Act (HMDA) to examine variations in loan costs based on type of loan, borrower, purpose (purchase, improvement, or refinance), and neighborhood characteristics. Loan costs are generally higher for nonconventional conforming loans with higher levels of credit risks (loans with higher combined loan-to-value, higher debt-to-income ratios, and for investment properties). This implies that product and borrower risk impact loan costs. However, borrower characteristics such as income and race/ethnicity are also associated with differences in loan costs even after controlling for loan characteristics, location, and lender fixed effects. Total loan costs are higher both in dollar terms and as a share of the loan amount for Black borrowers and Hispanic borrowers, and total loan costs represent a higher share of the loan amount for lower income borrowers. These disparities are larger in neighborhoods with higher levels of lender concentration and implicit racial bias. These findings suggest that in addition to access to mortgages and interest rates, loan costs can represent a barrier for access to homeownership with a disparate impact for Black and Hispanic borrowers, which contributes to perpetuate the homeownership gap.

Keywords

Mortgage loan costs; homeownership; borrowing constraints; homeownership gap

February 2022 Inspire Fund Awardees: Progress and Products

Five projects were awarded Inspire Fund awards in February 2022. They have completed various stages of work and have provided a report on their progress and products. Below, excerpts from these reports are highlighted to showcase the work that has been “Inspired” in 2022-23. Rick Mohler: “One Seattle: Leveraging Seattle’s Comprehensive Plan Update to advance housing diversity, affordability, livability and racial equity” This funding supported products from the Architecture 594 research seminar and Architecture 508 design studio, which tasked students…

Keith Leung

Research Interests: Mortgage, risk, demographics, finance and investment

Jeff McCann

Jeff McCann has a breadth of experience in construction management, real estate sales, and development. He is the founder and owner of Outdoor Perspectives LLC, a land-use consulting company that helps clients navigate the complexities of land acquisition, feasibility and entitlement issues. Jeff has assisted clients in the development of over a thousand acres of land in the Puget Sound region and helped facilitate other major development projects across the state. He has also been a licensed real estate broker for more than 25-years.

Before pivoting into development, Jeff spent many years in construction management. As a third-generation dirt contractor, his family originally started out with two horses and a flatbed wagon hauling dirt in the Kent valley. Jeff is a lifelong Husky having earned three degrees from the UW. He holds a Bachelor’s of Science in Building Construction (BCON) (1994), a Master’s of Science in Construction Management (2000), and a Master’s of Science in Real Estate (2021).

Matthew Disston

With extensive background in real estate project management, marketing research and economic consulting for a broad spectrum of national and international clients, Matthew Disston brings to DMG important project management and analytical skills in both public and private sector work.  His experience includes market feasibility studies, fiscal and financial analysis, entitlement and development processing, consumer research and economic analysis. Disston’s professional experience includes projects throughout the United States, Canada, Mexico and South America.

Prior to forming DMG, Disston served as vice president for Valeo Companies’ west coast regional office.  As part of the Valeo team, Disston was responsible for the development, product planning, market and financial analysis, architectural review, entitlement and jurisdictional approval for both single-family detached and attached homes in Santa Cruz, Fullerton, Rancho Cucamonga, Perris and Blythe California.  Additionally, Disston served as a project manager for transient lodging, recreational commercial, event facilities and high-density residential components for mixed-use projects located in central Sonoma County, and Fullerton California.

Disston’s resume includes transient lodging, light industrial, office, single-family detached and multi-family residential feasibility analysis throughout California, Arizona and Nevada, traditional and entertainment retail feasibility in Mexico and Brazil, and consumer research throughout the United States.  Disston was also responsible for the feasibility evaluation and market analysis for long-range planning of office, retail, hotel and industrial projects proposed on the 75,000-acre Irvine Ranch.

Disston graduated from the University of California, Berkeley where he earned a bachelor’s degree in urban economics.  He is a past member of the International Council of Shopping Centers, and a past member of the Association of California Water Agencies and he served for twenty years as a Director of the Trabuco Canyon Water District, and five years as the president of the board of directors for the Southern Orange County Wastewater Authority (SOCWA) Additionally, he has a 32-year association with the University of California, Irvine, where he teaches classes. Recently Disston served in an advisory role for the development of the Market Analytics classes extension at the University of Washington and has taught in the Runstad Real Estate Department since 2017.

CBE Research Restart Funding: Progress and Updates

The College of Built Environments awarded Research Restart funding to multiple project teams in 2022. Below are descriptions of their progress and project status to-date. July 2022 Cohort: Arthur Acolin received funding for their project entitled “Accessory Dwelling Units as Potential Source of Affordable Housing Across Generations.” A no-cost extension was approved in May 2023 due to delays in implementing the survey for the project. In July 2023, design of the survey instrument and postcards was completed, and next steps…

Publication of the Largest National Study on Community Land Trusts and Nonprofits with Shared Equity Homeownership Programs

The Largest National Study on Community Land Trusts and Nonprofits with Shared Equity Homeownership Programs was recently completed. In partnership with the University of Toronto, Grounded Solutions Network has completed the largest and most comprehensive national census on community land trusts (CLTs) and nonprofits with shared equity homeownership programs (SEH) to date. The report was made possible through the support of Freddie Mac, and which was developed in partnership with and published by the Lincoln Institute of Land Policy. The…

Urban Design & Planning student selected for 2023 applied research fellow cohort

The Population Health Initiative announced the summer 2023 cohort of applied research fellows. Among the group of 5 students (3 graduate and 2 undergraduate) is Pamela Lim from the College of Built Environments Urban Design & Planning department. These students will spend 10 weeks over the summer working collaboratively with King County’s demographer and Public Health – Seattle & King County’s Assessment, Policy Development and Evaluation Unit with the support of the Population Health Applied Research Fellowship. The team will…