The Influence of Homebuyer Education on Default and Foreclosure Risk: A Natural Experiment

The recent housing crisis has generated debate over the benefits and risks of policies and programs promoting homeownership for low and moderate income households. One important facet of this conversation is whether prepurchase homebuyer education (HBE) is effective in reducing default or foreclosure risk. Studies to date have primarily focused on default risk and have faced challenges in accounting for borrower selection into HBE. This study analyzes the outcomes of a natural experiment in the provision of a classroom‐based HBE program during the start‐up phase of a down payment assistance loan program at Tennessee's state housing finance agency in 2002. A competing risks analysis of monthly payment data from 2002 to 2009 for 732 mortgages indicates that, after controlling for borrower, mortgage, and economic factors, HBE did not reduce default risk, but was associated with 42 percent lower odds of foreclosure. Among borrowers who defaulted, HBE was associated with an increased probability of curing a first default and of avoiding foreclosure post‐default. Policymakers should consider the timing and intensity of HBE programs needed to influence default risk and how HBE may promote sustainable homeownership by influencing borrowers’ help‐seeking behavior and strategies for resolving defaults.     

The Two Browns: Policy Implementation and the Retrenchment of Brown v. Board of Education

The colorblind individualism that pervades American politics and society keeps schools segregated although Americans support integrated public education. While the 1954 US Supreme Court decision Brown v. Board of Education has never been overruled, later cases and policies have encouraged its retrenchment. We argue in this multi-disciplinary review of published literature that there are two different versions of Brown—the iconic, pro-integration symbol supported by most Americans, and a formal, juridical requirement that permits continued school segregation. The formal, juridical Brown is supported by the implementation of multiple educational policies, particularly neighborhood schools, magnet schools, and charter schools, all built on the firm belief that there is no violation of Brown. Rather than promoting a vision of Brown that champions a strong integration goal, these policies bolster the second interpretation of Brown: one that allows segregation to occur, so long as it is not outwardly deliberate.     

Institutional Power and the Risk of Finance

ABSTRACT

This article examines the nature of financial reason and the firm-level processes shaping and sustaining financial accumulation. It argues that the standard views of financial reason offered by neoclassical theory and international political economy prevent a nuanced understanding of key corporate power systems. Drawing on Hilferding’s theory of finance capital as well as his unique methodological approach, the paper shows that these accounts fail to consider properly the range of forces constituting financial rationality.