Publications : Reports & Papers
A Study of Closing Costs for FHA Mortgages (Research Report)Author(s): Susan WoodwardThis report analyzes FHA borrower closing costs using data from 7,600 FHA-insured, 30-year fixed-rate home purchase loans. Total closing costs paid to mortgage originators are substantial, averaging just under $3,400. Borrowers in neighborhoods with more minorities and lower educational attainment consistently pay higher costs than others. Loans with simpler terms are less expensive. Borrowers who use "no-cost" loans and so can shop on interest rate alone pay $1,200 less than borrowers who pay some lender or broker fees in cash. This suggests that consumers have a tougher time comparing alternatives when trade-offs are involved and that mortgage loan markets are not fully transparent or competitive.
| Posted: May 28, 2008 | Availability: HTML | PDF |
Why Not a "Super Simple" Saving Plan for the United States? (Reports/Opportunity and Ownership Project)Author(s): Pamela Perun,
C. Eugene SteuerleDespite decades of significant tax subsidies for pensions and retirement accounts, most Americans retire with little or no pension saving. This paper suggests that it is possible to create a "Super Simple" saving plan that would provide a basic, low-cost, easily administrable plan with the potential to increase significantly the retirement assets available to moderate- and middle-income individuals. This plan follows the lead of a new system about to be implemented in the United Kingdom, which features automatic contribution for employees who do not opt out, a significant government match, and simplification of existing rules amongst other elements.
| Posted: May 23, 2008 | Availability: HTML | PDF |
Children's Savings Accounts: Why Design Matters (Reports/Opportunity and Ownership Project)Author(s): Barbara Butrica,
Adam Carasso,
C. Eugene Steuerle,
Desmond TooheyOne way to achieve an ownership society is to endow all children with savings accounts starting at birth. This report shows that specific design features of a children's savings account program will impact the distribution of wealth. For example, non-taxability of account earnings distributes significantly more benefits to higher-income groups than to lower-income groups. Also, because many families experience mobility over their lifetimes, a significant portion of benefits conditioned on low annual income will accrue to middle- and higher-income families. Regardless, these accounts could be important in getting children banked and teaching them the value of saving and compound interest.
| Posted: May 23, 2008 | Availability: HTML | PDF |
Determinants of Asset Building (Series/Poor Finances: Assets and Low Income Households)Author(s): Sondra Beverly,
Michael Sherraden,
Min Zhan,
Trina R. Williams-Shanks,
Yunju Nam,
Reid CramerThis report provides a policy-oriented conceptual framework that has the potential to explain saving and asset accumulation across the entire population and to account for the low levels of saving and asset accumulation in the low-income population. The report also reviews empirical evidence that supports or challenges this framework.
| Posted: April 15, 2008 | Availability: HTML | PDF |
The Implications of Career Lengths for Social Security (Series/The Retirement Project Discussion Papers)Author(s): Melissa Favreault,
C. Eugene SteuerleGrowing fiscal pressures and increasing life expectancy have prompted calls to raise retirement ages. Some fear this change might harm long-career, lower-wage workers. Tying retirement benefit eligibility to years of service might protect low-wage workers who start their careers early. But higher disability rates and greater employment volatility could offset lower-wage workers’ early labor force starts. Using survey data matched to administrative records, we describe how work histories vary by gender, education, and other characteristics. We find that years of service are not likely to effectively protect the lowest-wage workers, as those with the least education also work the least.
| Posted: April 09, 2008 | Availability: HTML | PDF |
