Evidence Matters: Spring 2016 Issue

June 14, 2016  

Evidence Matters: Spring 2016 Issue

The Spring 2016 issue of Evidence Matters: Transforming Knowledge Into Housing and Community Development Policy, which focuses on housing finance and homeownership, is now available. This issue examines two pressing housing finance challenges — tightened access to mortgage credit for prospective homeowners and the growing number of older homeowners with mortgage debt — and reviews potential solutions. Additionally, this issue of Evidence Matters considers the importance of high-quality, independent homeownership education and counseling and profiles three organizations working to sustainably expand access to mortgage credit for low-income homebuyers.

Key Findings

• Even as the housing market recovers, lenders are implementing strict credit standards that exclude creditworthy borrowers, particularly members of traditionally underserved populations. At the same time, a greater proportion of older homeowners carry mortgage debt, potentially affecting their financial stability and health as they age.
• New credit scoring models, new products and policies that target creditworthy low-income borrowers, manual underwriting, and efforts to allay lenders' concerns could expand credit access sustainably, while local programs that provide property tax relief or assist with maintenance costs, along with financing options, can help older homeowners with mortgage debt.
• Research demonstrates that homeownership education and counseling can provide timely, meaningful support for homebuyers and homeowners, especially when it is appropriate for their needs, easily accessible, and offered early in the homebuying process.
• Programs that provide access to safe and affordable loans, offer intense one-on-one counseling and homebuyer support, and use innovative approaches to fund affordable mortgages help low-income families achieve and sustain homeownership.

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