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作者

来源

JOURNAL OF HOUSING ECONOMICS,Vol.44,P.26-34

语言

英文

关键字

DEFAULT; HECM

作者单位

[Miller, Joshua J.; Nikaj, Silda; Lee, Jin Man] US Dept Housing & Urban Dev, 451 Seventh St SW, Washington, DC 20410 USA. Miller, JJ (reprint author), US Dept Housing & Urban Dev, 451 Seventh St SW, Washington, DC 20410 USA. E-Mail: Joshua.J.Miller@hud.gov

摘要

Home Equity Conversion Mortgage (HECM) loans experience high rates of property tax default (IFE, 2016; CFPB, 2012). Given tax burden is predictive of default (Moulton et al., 2015), it is important for HECM participants to take advantage of available property tax relief programs. To examine participation in property tax relief programs, we match loan-level HECM origination records with local administrative tax records for properties in Chicago, IL. We find that nearly 40% of eligible HECM borrowers do not participate in a senior tax relief program for which they meet all eligibility requirements. Further, we find that senior tax relief participation is associated with a reduced probability of property tax default of 60%.