Search Results (20)

This study examines racial and ethnic disparities in mortgage-lending outcomes across different lender types—large banks, fintech lenders, non-bank lenders, small banks, and credit unions—using Home Mortgage Disclosure Act (HMDA) data from 2018 to 2023. By analyzing approval rates, rate spreads, and origination charges, we evaluate how borrower outcomes vary by race and ethnicity, controlling for loan characteristics, borrower attributes, and regional factors. Our findings reveal that Black and Hispanic borrowers consistently face less favorable terms than White borrowers, with disparities differing by lender type. Large banks, operating under stringent regulatory oversight, demonstrate relatively equitable pricing but impose higher loan denial rates on minorities. Credit unions, despite offering the lowest rate spreads overall, penalize minority borrowers more severely in pricing than other lender types. Fintech lenders, while charging higher-rate spreads and fees, show smaller credit access disparities for minority borrowers. Non-bank and small banks display mixed results, with inconsistencies in their treatment of minorities across pricing and credit access. These results highlight that neither technological innovations nor alternative lending models alone suffice to eliminate systemic inequities. Achieving equitable mortgage lending requires enhanced regulatory oversight, greater transparency in algorithmic decision-making, and stricter enforcement of fair lending practices. Full article

In China, many Internet financial platforms (IFPs) are grappling with sustainability challenges due to elevated default rates, which have triggered widespread investor anxiety. To evaluate the sustainability practices of these platforms, we propose a reputation evaluation model designed to rank IFPs based on their sustainability. The economic sustainability of an IFP is decomposed into three components: scale strength, capital liquidity, and sustainable operating capability. Through an analysis of the correlation relationships between various indicators, we have identified nine significant indicators. Mathematical models are established to quantify these nine indicator variables. Subsequently, the score values of each indicator are integrated to establish a reputation evaluation model utilizing the weighted geometric mean method. Furthermore, the reputation evaluation values for 18 Chinese IFPs were calculated using the developed model, and the sustainability of the platforms was ranked according to the reputation evaluation value. A comparative analysis was also conducted between the sustainable rankings proposed in this study and the development rankings of the “Home of Online Loans” (HOL). The results reveal that our model effectively considers both the current operational strength and the sustainable development capability of the platform. It successfully identifies platforms with poor sustainability, assisting investors in making more informed decisions. Simultaneously, this study identifies key indicators influencing the sustainability of IFPs, providing valuable insights for managers seeking to enhance the sustainable operational levels of their platforms. Full article

In the evolving landscape of the energy sector, it is vital for energy companies to grasp consumer behaviors to foresee future business prospects and risks. This study delves into how consumers react to Indonesia’s Electricity Company’s innovative business propositions, particularly the PV rooftop product. It also seeks to understand market reactions to other novel business concepts beyond the PV rooftop product. This research employs a quantitative approach, utilizing surveys for data gathering and statistical methods for analysis. Key variables examined include Attitude, Environmental Concern, Subjective Norm, Perceived Behavior Control, Personal Norm, and Regulation, with the primary focus on the Purchase Intention for the PV rooftop product. The findings reveal that key variables, specifically Personal Norm, Subjective Norm, and Regulation, significantly influence consumer behavior toward rooftop PV. This study also uncovers a high market demand for yet-to-be-launched services like electrical repairs, smart home consultancy, and micro-loans, indicating a diverse market potential for these innovative ideas. This research highlights the importance of analyzing consumer behavior in predicting the potential for both opportunities and challenges in a company’s new business ventures, particularly in the renewable energy sector. The results underscore the significant impact of sociocultural factors and regulatory frameworks on consumer decision-making processes. These insights offer critical guidance for Indonesia’s energy stakeholders in developing countries, aiding in formulating new business strategies and identifying market opportunities amidst the global shift towards renewable energy. This study’s key results emphasize the need for energy companies to adapt and innovate in response to consumer preferences and regulatory environments in order to capitalize on emerging market trends. Full article

Loan-type reverse mortgage plans and sell-type home reversion plans for retirement financing are two well-known equity release plans that entitle homeowners not only to release cash from their properties but also to allow them to age in place. Recently, a new hybrid equity release plan was proposed to incorporate the home reversion plan’s features with an option of staying in the property for a fixed period without being subject to survival. This additional option provides flexibility to homeowners to better meet their retirement financial and personal needs by reducing the financial uncertainty of home reversion products. In this article, we propose an enhanced home reversion plan with some new features to meet retirees’ other financial needs, such as life annuity incomes and guaranteed return of principal invested. An actuarial framework is provided to analyze the cost components of each benefit offered under the enhanced home reversion product. Numerical illustrations are presented to demonstrate and examine the actuarial values of the benefits and product risks with different parameter configurations under the recent Singapore mortality data set. Full article

Because India has one of the world’s fastest-growing economies, the Indian banking sector is essential to the country’s reform. The approval of home loans to customers is one of the crucial tasks carried out by Indian banks. The risk of loan repayment outside of the agreed-upon time frame can be reduced by accurately estimating the customer’s loan need. The majority of earlier studies on the development of banking lacked a methodical approach to analyze qualitative data. Even though the traditional multivariate statistically based factor analysis approach is a great way to categories data in qualitative analysis, the technique cannot be used without any statistical presumptions and additional information about the data. This study handles the banking attributes related to home loans using the Dominance-based Rough Set Approach (D-RSA). In order to categorize the customer’s attributes, this study suggests using a preference-based “if … then” decision rule. This rule can aid decision makers in understanding the risk factors associated with loan factors for a financial organization. Full article

The worsening housing problems of young adults in many countries have become a worldwide problem. Researchers point to a number of factors that influence young people’s decisions to own or rent their own apartments or houses. The term generation of renters or the lost generation has appeared in the literature in relation to the young adult generation. This article offers insights into the housing preferences of young adults aged 18 to 45 in Poland, with a particular focus on the renter cohort. Conclusions are drawn about whether young adults who are already renting prefer to buy an apartment or house rather than maintain their status quo, and what determines their decisions in this regard. The study identifies a number of socioeconomic factors that influence the housing decisions of young renters in Poland. It addresses some of the problems and challenges of today’s housing market and, in particular, examines what leads young Polish renters to switch from renting to buying their first home or, alternatively, to live in a rented apartment for years (thus showing indifference to homeownership). Some of the reasons for the change in attitude toward this issue are highlighted. The study is quantitative in nature, relying on an online survey and a mediation analysis that is particularly well suited to explaining the relationship between many different variables. Of the eight hypotheses tested in the study (using mediation analysis), only three could be proven, namely that the amount of rent payments and other costs for economic reasons influences the willingness to buy an apartment or a house, and also that the length of the rental period has a negative influence on the willingness to buy a house. Finally, the mediation model provides evidence that the higher a young renter’s tolerance threshold for mortgage interest compared to “rent payments”, the more inclined they are to buy an apartment or house. The study suggests that the housing finance subsystem has some shortcomings as far as financing young people is concerned. Strategically, there are two complementary solutions that could be implemented: (1) a long-term home savings plan or program and (2) innovative housing loan options tailored to the financial situation of young people. Full article

While the current housing market remains relatively strong, with housing prices setting records, concerns are growing of a potential housing bubble similar to that of 2007–2009; this paper compares the current housing market environment with that of 2007–2009 and concludes that the many of the factors that caused the 2007–2009 crisis do not exist today. Factors associated with subprime mortgages, poor and non-existent underwriting loan requirements, weak regulatory oversight, exaggerated credit ratings, under-capitalization in the banking sector and excessive speculative activity in the housing market have been addressed by regulation, which is aimed at preventing another financial crisis similar to 2007–2009. Equally important, major fundamental factors affecting real estate valuation are providing support for the housing market and housing prices; these factors are impacting both the demand and supply side of the housing market. The factors include the lack of inventories of homes available for sale, the underproduction of housing, decreased household mobility limiting supply and the increase in housing demand from millennials and institutional investors; these fundamental factors were not evident during the 2007–2009 period. Despite a number of indicators signaling a potential topping out and overvaluation of housing prices, the authors conclude that the fundamental factors will limit the extent that the housing market weakens over the next few years. Full article

The growth of renewable energy facilities worldwide creates new challenges for sustainable regional development. Unregulated investment flows in the green energy sector cause disparities in the deployment of various renewable energy technologies, worsen the ability to balance national energy systems, etc. This article is the first comprehensive study that offers a methodology for multifactor modeling of investment flows in regional green energy deployment considering the priorities of national, regional, and local authorities within the sustainable development concept. The proposed methodological approaches help (1) determine the types of renewable energy technologies for priority development in the region, (2) select specific green energy projects to receive budgetary support on territories, and (3) form the optimal mechanism for budget financing distribution on regional development of renewable energy technologies. The modeling factors include natural conditions and resource base of a territory; its economically feasible renewable energy potential; the territory’s energy needs; installed capacity and electricity generation of new green energy facilities; power plants’ life cycle duration, the investment amount, etc. The model approbation on the example of household solar and wind power plants in the Sumy region, Ukraine, has shown the need to significantly increase financial support for renewable energy projects, primarily due to the region’s energy deficit. Calculations revealed that the interest-free loan share for both technologies should be 2.843 and 2.844 times higher than the basic share of lending (20%). For the 30-kW solar power plant project, the indicator should be 64.67% instead of the basic one of 56.86% for home solar energy facilities. Thus, the methodological approaches presented in the article are new tools that allow territorial authorities to purposefully shape and manage investment flows in the renewable energy sector to ensure sustainable energy development of regions worldwide. Full article

Housing research is one of the hot topics in many countries. This paper provides a quick review of the housing economics research in the US, Sweden, Latvia, China, Corsica, and Italy published in this special issue. Bao and Shah studied the effects of home-sharing platforms in general and the effects of the US’ Airbnb on neighbourhood rent. Wilhelmsson’s results showed that interest rates directly affected house prices and indirectly affected bank loans in Sweden. Caudill and Mixon threw light on the relative negotiating power of the buyer and seller as a key element of real estate price models. Čirjevskis presented a real application of “step-by-step” valuation options for real estate development projects as a managerial risk management tool for similar real estate development projects in the EU to make investment decisions during COVID-19 and in the post-COVID-19 era. Pelizza and Schenk-Hoppé used an exponential Ornstein–Uhlenbeck process to model price dynamics provincially and regionally to estimate the liquidation value. Full article

Beyond the immediate impositions of dealing with COVID-19, this disease represents a severe and significant challenge confronting Pakistan’s economy. The study’s objective was to evaluate the coronavirus epidemic’s effect on Pakistan’s economy and measures devised to mitigate the damage done by this disease. The study research design used the elementary concept of Keynesian theory comprising of the mapping of systematic behavior of the COVID-19 pandemic. Issues were formally underpinned, described, and visualized through the Keynesian theory concept. The eruption of COVID-19 has jolted the national and international economy. Pakistan is included, causing millions of people to stay at home, lose their jobs, and suspend or end business operations. Unemployment in Pakistan has reached nearly 25 million people, driving many towards conditions of hunger and poverty as the major economic damage in several sectors is anticipated at around PKR 1.3 trillion. The hardest-affected sectors comprise industries such as tourism and travel, financial markets, entertainment, manufacturing, etc., having a devastating effect on gross domestic product (GDP). It is mainly daily-wage earners and people running small businesses that have been seriously exploited and subjected to a curfew-like situation. However, the Keynesian theory suggests that supportive macroeconomic policies must restore trust, demand recovery, and provide interest-free loans to overcome Pakistan’s currently upcoming crisis. Full article

With the increasing importance of financial loans in home purchases in urban China, the role of housing loans in the accumulation of housing wealth needs to be unraveled. Using the data from the 2017 China Household Finance Survey (CHFS), this study investigates the use of housing loans and their impact on housing wealth inequality. It has been found that people with higher socioeconomic status and institutional advantages benefit more from housing provident fund loans and are more likely to fully invoke different financing channels to accumulate housing wealth. On the contrary, disadvantaged groups have to resort to costly market-based mortgages to finance their home purchases. This leads them to fall further behind in housing wealth accumulation. The spatial stratification of housing wealth accompanying the urban hierarchy was also observed and found to be closely linked to the type of housing loans. In this increasingly financialized era, relying on financial instruments in the process of household asset accumulation may further amplify the existing wealth inequality among social groups. Full article

Reducing household energy consumption is one of the most important strategies used to decrease fossil fuel consumption and greenhouse gases emissions, and to encourage renewable energy utilization. Most energy conservation strategies in the domestic sector are aimed at preferential loans, i.e., purchasing renewable electricity or to improve the efficiency of home appliances, such as air conditioning and lighting. However, despite the relative economic successes of these technologies, they have not had expected impacts in regard to energy consumption. In this work, the authors analyzed the consumption patterns of two equivalent households—one was adapted with improved thermal insulation and a 1.2 kW photovoltaic system to reduce consumption from the electrical grid. The results show that dwellings where no improvements were made registered lower electric energy consumption, due the fact that users were aware that no strategy had been implemented, and its consumption; hence, electricity payments depended solely on one’s attention over the electronic device operations. On the other hand, energy conservation strategies in households promotes confident and relaxed attitudes toward the use of energy, leading to lower energy billings, but a higher gross energy consumption. Full article

Sustainable futures necessitate a concomitant requirement for both sustainable buildings and sustainable behaviours under one roof. The defining principles behind Earthship buildings are to promote the use of local, recycled, waste, natural and renewable materials in their construction, for the adoption of a passive solar design for internal heating/cooling, collection of rainwater as a potable water supply, and encourage the onsite recycling of used water for plants to aid food production. However, despite growth in Earthship buildings constructed across many countries of the world, their appeal has not yet made a noticeable contribution to mainstream housing. Therefore, this study is the first to attempt to explore public perceptions towards the benefits and barriers of Earthship buildings as a means of understanding their demand by potential home builders/owners. Opinions were sought through questionnaire surveys completed by visitors to the Brighton Earthship building. Results reveal that the public believe that the reclamation of rainwater and greywater, renewable energy consumption and use of recycled materials included in the design/build are the major benefits of Earthship buildings, whilst the opportunity for a modern living style in a conservative lifestyle/setting, having a building that is cheaper than an ordinary home and the possibility of living totally off grid are considered the least beneficial reasons for building Earthship homes. Results also reveal that the public believe acquiring necessary permits/permissions to build may be more complicated, securing financial support (mortgage/loan) may be more challenging, and identifying/attaining suitable building plots are major barriers of Earthship buildings, whilst the futuristic/alternative building design, being built from waste materials and being entirely dependent on renewable resources (rainfall/wind/sunshine) are considered the least important barriers to building Earthship homes. Notwithstanding the participants included in this study already having an interest in Earthship buildings/lifestyles, it is concluded that the general public deem the general principles of Earthships as an acceptable choice of building/living but it is the formal means of building or buying an Earthship home that is the greatest hurdle against the uptake of Earthship buildings. Therefore, if sustainable futures are to be realized, it is proposed that a shift away from traditional house building towards Earthship building will require the involvement of all stakeholders immersed in the building process (architects, planners, builders, investors, lawyers) to path an easier journey for Earthship buildings and sustainable living. Full article

Using cross-sectional data from a nation-wide survey of American head-of-households conducted in the spring of 2010, we examined the ameliorating effects of economic literacy on the probability of specific household financial outcomes resulting from the 2008 financial crisis and the associated Great Recession. A series of probit regressions were estimated to capture the impact of economic literacy on the probability that households experienced job loss, delinquent mortgage payments, delinquent credit card payments, delinquent auto loan payments, loss of home, and personal bankruptcy. The head-of-household’s economic literacy was measured by the level of formal education received in economics and by the score achieved on an in-survey quiz of basic economic concepts and principles. The results indicate that realized quiz scores were correlated with the mitigation of job loss, late payment behavior, and personal bankruptcy, ceteris paribus. However, the results for the impact of formal economic coursework in school were mixed. Full article

Increases in extreme weather events have caused extensive flooding across the United States. In response, federal, state, and local governments have broadened their flood mitigation strategies to include acquisition and demolition of flood-damaged homes (“buyouts”). Little work has documented or analyzed the range of strategies for funding buyouts. Federal programs provide the bulk of funding, but these programs are often slow. Also, state and local governments struggle to meet cost-match requirements. We present and analyze a nationwide census of buyout funding programs (n = 34), which draw on five primary funding mechanisms. We find that state and local governments are using a range of traditional and innovative financial mechanisms, including municipal/green bonds, revolving loan funds, local option sales taxes, and stormwater utility fees, as viable tools for funding buyouts. These tools may promote more autonomy from federal government mitigation programs, and ultimately, faster buyout processes. Full article