Affordability and mortgage design: Permanent buydowns and buyups

Abstract

A simulation model that mirrors the actual practices of lenders in setting qualification requirements for mortgage loans is used to assess the impact of permanent buydowns and buyups on the maximum sale price that buyers can afford. Buydowns are reductions in the coupon rate traded off against higher discount points; buyups are the reverse. Although buydowns have little effect on afford ability, buyups can have significant effects. Their potential is largely unrealized, however, because of the call risk to lenders of loans carrying premiums. The authors propose a “discount recovery” provision, which would be similar to a prepayment penalty except that the payment upon prepayment would be tied to the amount of the discount foregone by the lender. This would protect lenders against call risk, giving them every reason to offer buyups as a way of expanding demand.     

WHAT'S GOOD FOR THE GAYS IS GOOD FOR THE GANDER: MAKING HOMELESS YOUTH HOUSING SAFER FOR LESBIAN,GAY, BISEXUAL,AND TRANSGENDER YOUTH

Across the United States, lesbian, gay, bisexual, and transgender (LGBT) youth are grossly overrepresented in the homeless youth population. These youth are at an increased risk of being victims of violence in homeless youth housing facilities. This Note examines the causes of the overrepresentation of LGBT youth in the homeless youth population. Additionally, this Note suggests the following changes to the regulation of homeless youth housing programs to make them safer for these youth: (1) placing low maximum limits on the occupancy capacity at which these programs may operate, (2) requiring that all showering facilities provide individual privacy, (3) prohibiting anti‐LGBT discrimination in the provision of services, (4) requiring nondiscrimination and sensitivity training, and (5) promoting the creation of LGBT‐specific homeless youth housing programs.     

Exposure to Family Violence in Young At-Risk Children: A Longitudinal Look at the Effects of Victimization and Witnessed Physical and Psychological Aggression

This study examines the contribution of specific types of family violence exposure (e.g., victim vs. witness; physical vs. psychological) to aggressive and anxious/depressed problem behaviors in young (i.e., 6-year-old) at-risk children. This multisite prospective study of 682 children from four different regions of the country asked mothers and their 6-year-old children to report on violence exposure in their families. After controlling for mother reports of child problem behaviors on the Child Behavior Checklist at Age 4, it was found that subsequent exposure to family violence predicted reported problem behaviors at Age 6. Although mothers' report of child victimization predicted subsequent problem behaviors, witnessed violence was related to these problems only when both mothers and children reported its occurrence. The results of this study suggest that even though there was a relationship between witnessed and directly experienced family violence, both had independent, noninteractive effects on subsequent behavior problems.     

Giving Legal Effect to the Results of WTO Trade Negotiations: An Analysis of the Methods of Changing WTO Law

Trade negotiations conducted in the World Trade Organization(WTO) offer the significant benefit that their results can bemade legally binding and enforceable through an effective disputesettlement system. If negotiators wish to avail of this benefit,they must follow the correct procedures to give legal effectto their work. This article critically evaluates the main methodsof converting the results of WTO trade negotiations, with aparticular focus on the ongoing Doha Round, into WTO law. Itdemonstrates that amendments to the WTO agreements are procedurallycumbersome and have significant limitations. The article thereforeanalyses several alternative methods including modificationsto schedules, decisions of the Ministerial Conference (suchas waivers, authoritative interpretations, and Other Decisions),and the incorporation of new agreements into WTO law (whethermultilateral, plurilateral, or reference rules accepted throughschedules). The choice between these various methods is complicatedas each has advantages and disadvantages. By comparing and evaluatingthe available options, this article aims to assist negotiatorsand lawyers in making that difficult choice.