The United States has long exhibited enthusiasm for homeownership. The converse of this is that it has tended to neglect rental housing. This article seeks to do the following: (1) explain why rental housing is desirable; (2) lay out the policies that favor owneroccupied housing; (3) discuss...

The recent financial crisis was triggered by large and unexpected losses on mortgages and mortgage-related securities. Here we examine model risk arising from innovations in mortgage markets and how those innovations affect asset values. In particular, we examine the effect of parameter...