000			01491pab a2200181 454500
008			180718b2001 xxu||||| |||| 00| 0 eng d
100			_aBlaackman, Allen
245			_aLocation-efficient mortgages: is the rationale sound?
260			_c2001
300			_ap.633-49
362			_aFall
520			_aLocation efficient mortgage (LEM) programs are an increasingly popular approach to combating urban sprawl. LEMs allow families who want to live in densely populated, transit-rich communities to obtain a larger mortgage with a smaller down payment than traditional underwriting guidelines allow. LEMs are premised on the proposition that homeowners in such "location-efficient" areas can safely be allowed to breach underwriting guidelines designed to prevent mortgage default because they have lower than average auatomobile-related transportation expenses and more income available for mortgage payments. This paper employs records of more than 8000 FHA-insured mortgages matched with data on various measures of location efficiency to test this proposition. The results suggest that it does not hold and that LEMs - like other low-down-payment mortgage programs - will raise mortgage default rates. This cost must be weighed against any potential anti-sprawl benefits LEMs may have. - Reproduced
650			_aUrban development - United States
650			_aUrban development
700			_aKrupnick, Alan
773			_aJournal of Policy Analysis and Management
909			_a50441
999			_c50441 _d50441