Furman Center Presents New Data on NYC Mortgage Lending
The Furman Center for Real Estate and Urban Policy, a joint research center between NYU Wagner and NYU Law, recently released its fourth annual analysis of FFIEC’s Home Mortgage Disclosure Act data, called Mortgage Lending in the Great Recession: HMDA 2009.
The analysis reflects several surprises in a tumultuous year. While home purchase mortgage lending declined throughout the recession, the study found that lending to low and moderate income home buyers increased in 2009, as did the number of new mortgages backed by the Federal Housing Administration (FHA) and Veteran’s Administration (VA). In 2009, 16 percent of New York City home purchase mortgages were FHA/VA-backed loans, compared to less than one percent of loans issued from 2005 to 2007.
The study also found, in contrast to home purchase lending, that mortgage refinancing increased substantially in 2009. The increase in refinancing activity, however, was not uniform across New York City’s different racial and ethnic communities. Black and Hispanic homeowners did not refinance at the same rates as white and Asian borrowers, which suggests that not all New York homeowners were equally able to take advantage of lower interest rates and reduce their monthly payments.
Furman Center Receives MacArthur Award for Creative and Effective Institutions
The John D. and Catherine T. MacArthur Foundation named NYU's Furman Center for Real Estate and Urban Policy a recipient of the MacArthur Award for Creative and Effective Institutions. This distinguished award recognizes the Furman Center's excellence in providing objective, policy-relevant research to address the challenges facing neighborhoods in New York City and across the nation. The award, announced on February 16, comes with a grant of $1 million, which the Furman Center will use to broaden its research and policy analysis to more national issues.
"We are humbled and honored that the Furman Center was selected for such a prestigious award," said Vicki Been, faculty director of the Furman Center. "The demand for our work has grown dramatically with the housing crisis and the increasing need for sustainable and affordable housing across the country. This award presents a remarkable opportunity for us to expand our research beyond New York City to help policymakers in Washington and across the nation make more effective housing and community development investments and policies."
"Because we are based at New York University, and are a joint project of the NYU School of Law and the Wagner Graduate School of Public Service, we're able to draw on the talents of a diverse team of faculty and students to produce rigorous, interdisciplinary research on urban policy issues," Furman Center Co-Director Ingrid Gould Ellen said. "The MacArthur Award comes at a critical time, allowing us to continue to expand the work we've always done in New York City to cities and neighborhoods across the country, and to address a broader range of national issues and public policy debates."
From analyses of how subsidized housing investments affect neighborhoods, to studies of the impacts the foreclosure crisis has had on local crime, neighboring property values, tenants, and the educational trajectories of children, the Furman Center has been committed to producing objective and empirically rigorous research on pressing policy issues. Its policy breakfasts, roundtable discussions, and conferences bring thought leaders from all sectors and all points of view together to discuss topics ranging from new models for housing extremely low-income households to creative ways of addressing credit needs in a volatile and declining housing market. The Center launched an Institute for Affordable Housing Policy in 2010 to bring research, policy analysis, and debate about promising new ideas and innovative practices to bear on the challenges of creating cost-effective affordable housing programs. Through its annual State of New York City's Housing and Neighborhoods report, Quarterly Housing Updates, and Subsidized Housing Information Project, the Center provides essential data and analysis for the media, government agencies, non-profit housing providers, and affordable housing developers and financiers.
The award is both a recognition of the excellence of the Furman Center's prior research and policy analysis and an investment in the Furman Center's future. The Furman Center will use the grant to build data and research partnerships that will allow it to broaden the geographic scope of its research, strengthen and expand its policy analysis, and improve its communications and data management infrastructure.
More information, including an overview video about the Furman Center, is available here.
The Furman Center is one of only 15 organizations from six countries to be recognized today with the MacArthur Award for Creative and Effective Institutions. "From Chicago to Kampala, these extraordinary organizations demonstrate exceptional creativity and effectiveness," said MacArthur President Robert Gallucci. "They provide new ways to address old problems. They generate provocative ideas and they reframe well-worn debates. And their impact is altogether disproportionate to their size."
The MacArthur Foundation does not seek or accept nominations for its Creative and Effective Institutions awards. To qualify, organizations must demonstrate exceptional creativity and effectiveness; have reached a critical or strategic point in their development; show strong leadership and stable financial management; have previously received MacArthur support; and engage in work central to one of MacArthur's core programs.
Furman Center releases new study on racial segregation and subprime lending
On November 19, 2009, the Furman Center released a new report examining the relationship between residential segregation and subprime lending. The study examined whether the likelihood that borrowers of different races received a subprime loan varied depending on the level of racial segregation. It looked both at the role of racial segregation in metropolitan areas across the country and at the role that neighborhood demographics within communities in New York City played. The report found that, nationally, black borrowers living in the most racially segregated metropolitan areas were more likely to receive subprime loans than black borrowers living in the least racially segregated metropolitan areas. When looking just at New York City neighborhood demographics, the report found that living in a predominantly non-white neighborhood made it more likely that borrowers of all races would receive a subprime loan.
The Furman Center is a leading academic research center, and a joint initiative of NYU's Robert F. Wagner Graduate School of Public Service, and the School of Law. The director is Vicki Been, the Boxer Family Professor of Law, and the co-director is Professor Ingrid Ellen of Wagner.
Furman Center Report and Forum Explore Gentrification
This month, the Furman Center, part of NYU Wagner and the School of Law, released its State of New York City's Housing and Neighborhoods in 2015 report. The report includes a "Focus on Gentrification” (PDF) that explores gentrification within the context of New York City's neighborhoods. Of the city's 55 neighborhoods, the report classifies 15 as "gentrifying," or initially low-income neighborhoods that have seen above-median rent appreciation. It also analyzes how their housing and population have changed over the past two decades. The report finds that they have seen greater growth in the shares of the population that are young adults, college-educated, white, and living alone or with roommates, as compared to other neighborhoods.
The widely cited annual report was introduced and discussed at a symposium (video) hosted by the Community Development Studies & Education Department of the Federal Reserve Bank of Philadelphia, and the Federal Reserve Bank of Minneapolis,
Ingrid Gould Ellen, Professor of Urban Policy and Planning at NYU Wagner, is the Furman Center's faculty director. She introduced the symposium keynote speaker, NYU Wagner Professor Katherine O'Regan, who is currently on leave as an NYU Wagner faculty member and serves as Assistant Secretary of Policy Development and Research U.S. Housing and Urban Development (HUD). Assistant Secretary O'Regan discussed neighborhood demographic, rent, and affordability trends, using research by the Furman Center. The forum also featured views from practitioners on best practices for inclusive neighborhoods and equitable development.
Furman Center Sees Sharp Rise in Sub-prime Mortgages in NYC
Getting Out the Vote, Innovatively
A fascinating article in the Sunday magazine of The New York Times describes how techniques developed by behavioral science researchers are at the forefront of a dramatic change in how politicians and parties get out the vote. The emerging data-driven approach to moving voters was co-pioneered by Don Green, currently Visiting Distinguished Professor at NYU Wagner & NYU Abu Dhabi.
"As the 1998 elections approached, Green [and fellow Yale professor of political science Alan Gerber] partnered with the League of Women Voters to split 30,000 New Haven voters into four groups," the article explains. "Some received an oversize postcard encouraging them to vote, others the same message via a phone call or in-person visit. One control group received no contact whatsoever. After the election, Gerber and Green examined Connecticut records to see who actually voted. The in-person canvass yielded turnout 9.8 percent higher than for voters who were not contacted. Each piece of mail led to a turnout increase of only 0.6 percent. Telephone calls, Gerber and Green concluded, had no effect at all."
The Times article goes on to describe why the results have proven so seminal.
As it happens, the article appeared just a few days after Professor Green spoke at Wagner's doctoral colloquium October 28.
Green has written extensively on a range of topics, including voter turnout, campaign finance, perceptual bias, rational learning, experimental methods, and rational choice theory. He is currently writing a book on field experiments in the social sciences. His resume and other materials can be found here.