The feasibility and functioning of public mortgage insurance models : an international comparison

Public mortgage insurance (MI) is one type of supply-side government intervention in housing finance. It is an important component of the modem housing finance market, employed to expand homeownership and provide credit enhancement to mortgage loans. This research explores the feasibility and functioning of public MI, by conducting an international comparison of three representative public MI programs: the U.S. Federal Housing Administration; the Dutch Homeownership Guarantee Fund; and the Mexican Federal Mortgage Corporation. The main purpose is to build an integrated framework for policymakers when considering a public MI scheme, from institutional, financial, and operational perspectives. Research methodologies used include case studies, interviews, Monte Carlo simulation models, and regression analyses. The analytical framework of this research comprises three research questions: a) What are the primary economic problems in housing and housing finance markets that cause market inefficiency and hence call for government intervention in the form of public MI? b) What are the implied liabilities imposed on the backing government of sponsoring a public MI enterprise? and c) What are the potential economic problems that can result from the creation of a public MI system?

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Urban Studies and Planning.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2005

Author dc:creator

• Cao, Liou

Advisor dc:contributor.advisor

• Joseph Ferreira, Jr.

• Urban Studies and Planning.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/34167
• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Identifier URI

http://dspace.mit.edu/handle/1721.1/34167

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/34167