At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve.
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
Do you have a request for information and records? Learn how to submit it.
Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
As part of our core mission, we supervise and regulate financial institutions in the Second District. Our primary objective is to maintain a safe and competitive U.S. and global banking system.
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
We are connecting emerging solutions with funding in three areas—health, household financial stability, and climate—to improve life for underserved communities. Learn more by reading our strategy.
The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality.
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
July 2009 Volume 15, Number 1 |
JEL classification: E42, N22, E58 |
Authors: Andrew F. Haughwout and Ebiere Okah Measures of housing units with negative equity—in which the mortgage balance exceeds the value of the collateral housing unit—have become a necessary component in crafting policies to address the current foreclosure crisis. This article estimates negative equity in the U.S. nonprime mortgage market for 2008-09 to describe the sources of the problem and the characteristics of borrowers in negative equity. The authors combine information from house price indexes with data on individual loans to estimate the prevalence and magnitude of negative equity across various dimensions, including the location of the property and the year in which the mortgage originated. They find that negative equity is closely associated with the time and place of mortgage origination and with the existence of subordinate liens against the property. In addition, borrowers whose mortgage is worth more than their house are twice as likely as borrowers in positive equity to be seriously delinquent, or in default, on their first-lien mortgage. The study also uses information derived from housing price futures contracts to estimate the path of negative equity beyond 2009. |
|||
|
|||