Ashwani Vasishth ashwani@csun.edu [Last update: April 30, 2004]
Allen, J. Linn. 1998.
"Mortgages With A Motive A Growing Number of Home Loans Serve A Specific
Social Purpose," Chicago
Tribune, (26 Jul. 1998): 1. LA Public Library, Los Angeles, CA. 29 Mar. 2004 <http://www.proquest.com/>. [In Milwaukee, workers at Harley-Davidson
Corp. headquarters can get a $2,500 forgivable loan to buy a home--as long as
the home is within walking distance of the headquarters in an inner city area
west of downtown. And a new loan
of that type is under development by a partnership including the Chicago-based
Center for Neighborhood Technology. The group is promoting what it calls a location-efficient
mortgage (LEM) to encourage people to buy homes near--and presumably make use
of--public transportation. The LEM
Partnership, which also includes the Natural Resources Defense Council in San
Francisco and the Surface Transportation Policy Project in Washington, is
working to get government-chartered housing finance giant Fannie Mae to back a
pilot project in Chicago for the mortgage.]
Anonymous. "A Leap for LEM," The
Amicus Journal (1 Oct. 1998): 5-6. LA Public Library, Los Angeles,
CA. 29 Mar. 2004 <http://www.proquest.com/>. [Scientist David Goldstein created the location-efficient
mortgage (LEM), which allows an urban family to be as equally qualified for a
mortgage as a suburban family. This means more families in or near cities could
qualify for homes, reducing urban sprawl and habitat destruction.]
Anonymous. "Homing In On Solutions," The Amicus Journal
(1 Oct. 1996): 7-7.
LA Public Library, Los Angeles, CA. 29 Mar. 2004 <http://www.proquest.com/>. [The Natural Resources Defense Council is
trying to make buying a home easier with the Location Efficient Mortgage (LEM).
The LEM allows lenders to factor the transportation savings inherent in an
urban setting into their calculation of an applicant's ability to afford a
home.]
Anonymous. "Prime Location," The Amicus Journal
(1 Jan. 1998): 5.
LA Public Library, Los Angeles, CA. 29 Mar. 2004 <http://www.proquest.com/>. [The concept behind the Location Efficient
Mortgage is the less a homeowner spends on household transportation--the
second-biggest expense for a homeowner--the more he or she will have for other
expenses, such as a mortgage.]
Anonymous. 1999.
"Loan Will Benefit Buyers Near Transit," Orlando Sentinel
(1999, June 13).J6.
Bailey, Issac J.
"Fannie Mae Tests Mortgage Program That Allows a Few Missed
Payments," Knight Ridder Tribune Business News 10
October20021. LA Public Library,
Los Angeles, CA. 29 Mar.
2004 <http://www.proquest.com/>. [Oct. 10--Fannie Mae is in the early stages of rolling out a
mortgage that would let homeowners in a financial pinch skip up to two monthly
payments a year. Under the program, dubbed "payment power" or
"rainy day mortgage," a 30-year fixed-interest-rate mortgage will
come with a built-in feature that lets homeowners make two annual skip payments
- - but only 10 skipped payments over the life of the loan. Fannie Mae has implemented other
mortgage programs in recent years, including the "Location Efficient
Mortgage," That program lets
residents who consistently use mass transit systems qualify for higher mortgage
amounts.]
Benfield, K. & M.
Rami & D. Chen. 1999. Once There Were Greenfields: How
Urban Sprawl Is Undermining America's Environment, Economy And Social Fabric.
New York: Natural Resources Defense Council. <http://www.nrdc.org/cities/smartGrowth/greenfield.asp>
(Excerpts available at: <http://www.nrdc.org/cities/smartGrowth/rpave.asp>)
Blackman, Allen. 2002. "Testing the Rhetoric: Location Efficient Mortgages May
Have More Costs and Risks Than Proponents Claim," Regulation, v25n1
(Spring 2002):
34(5). LA Public Library, Los Angeles, CA. 30 Apr. 2004 <http://www.proquest.com/>.
[States that this
research does not consider the benefits of LEMs, simple their costs and
risks. Argues that the risks
attached to LEMs, in terms of default rates, should be viewed realistically, if
such programs are to work.]
Blackman, Allen &
Alan Krupnick. 2001. "Location-Efficient Mortgages: Is The Rationale
Sound? " Journal Of Policy Analysis And Management
20.4 (2001): 633-649. LA
Public Library, Los Angeles, CA.
29 Mar. 2004 <http://www.proquest.com/>. [Location efficient mortgage (LEM)
programs are an increasingly popular approach to combating urban sprawl. LEMs
allow families who want to live in densely populated, transit-rich communities
to obtain a larger mortgage with a smaller down payment than traditional
underwriting guidelines allow.]
Carnahan, Ira. 2001.
"Green Banking: Are People Who Live ," Forbes,
(20 Aug. 2001): 046.
LA Public Library, Los Angeles, CA. 29 Mar. 2004 <http://www.proquest.com/>. [Summarizes the doubts raised by Blackman
and KrupnickÕs research, which argues that LEMs may have a higher risk of default
attached to them than environmentalist would like to acknowledge.]
Center for Neighborhood
Technologies. 2000. Location-Efficient Mortgage Project. <http://www.cnt.org>
Danielsen, K.A. &
R.E. Lang & W. Fulton. 1999. "Retracting suburbia: Smart Growth and
the Future of Housing," Housing Policy Debate, 10, 513-540.
Goldstein, David B. 1996. Making Housing More Affordable:
Correcting Misplaced Incentives in the Lending System. Natural Resources Defense Council. San
Francisco, California May 27, 1996.
<>
Holtzclaw, John. 1994. Using
Residential Patterns and Transit To Decrease Auto Dependence and Costs.
Natural Resources Defense Council, San Francisco, and California Home Energy
Efficiency Rating Systems, Costa Mesa, California, 1994.
Holtzclaw, John & Robert Clear
& Hank Dittmar & David Goldstein & Peter Haas. Undated. Location Efficiency: Neighborhood
and Socio-Economic Characteristics Determine Auto Ownership and Use - Studies
in Chicago, Los Angeles and San Francisco. (Full document available
from Southern California Association
of Governments, vasishth@scag.ca.gov,
or John Holtzclaw, john.holtzclaw@sierraclub.org) [Auto ownership and mileage per car are shown to vary
in a systematic and predictable fashion in response to neighborhood urban
design and socio-economic
characteristics in the Chicago, Los Angeles, and San Francisco regions. In all
three cases, average auto ownership is primarily a function of the
neighborhoodÕs residential density, average per capita income, average family
size and the availability of public transit. Similarly, the average annual
distance driven per car is a strong function of density, income, household size
and public transit, and a weaker function of the pedestrian and bicycle
friendliness of the community. The similarity of these relationships among the
three metro areas, despite their differences in geography and age, suggests
that similar relationships may be consistent throughout the United States or
worldwide. The application of the results to other metro areas is discussed.
The dependence of driving on the policy-related variables of residential
density, transit access, and pedestrian and bicycle-friendliness may provide
policy makers with additional tools for reducing the costs and environmental
impacts of transportation.]
Institute of Location
Efficiency. Undated. Location Efficient Mortgages: FAQ. Accessed, April 30, 2004.
McCosh, John. 2001.
"Financial Incentives May Offer Boost for Smart Growth
Concepts :[Home Edition]," The Atlanta Constitution, 21
May. 2001,A.1. LA Public
Library, Los Angeles, CA. 29
Mar. 2004 <http://www.proquest.com/>. [By winter, officials
say, metro Atlanta could join a handful of cities where house hunters can apply
for a Location Efficient Mortgage. The Fannie Mae program rewards people who
move to walkable places near transit lines by not counting the loan on a second
car against their debt load when they apply for mortgages. That allows them to
buy a lot more house than with a conventional loan, on the theory that if they
live near transit, they're less likely to need a second car.]
McCosh, John. 2001.
"'Smart Growth' Gaining Urgency More Areas Eyeing Village
Concept :[Home Edition]," The Atlanta Constitution, (21
May. 2001): E.1. LA Public
Library, Los Angeles, CA. 29
Mar. 2004 <http://www.proquest.com/>. [The plan also must pass muster with the Georgia Regional
Transportation Authority, and some members of its board are pushing ARC
planners to include more money for the "smart growth" initiative.
Board member Eric Hovdesven is prepared to introduce a resolution to GRTA
directing the ARC to up its 2004 funding to $35 million from $13 million. One way to cut demand for more asphalt
is to create financial incentives for developers to build livable centers
throughout the region. The initiative is addressing that, [Scott Bernstein]
said, because it is prompting cities and counties to study and revise their
zoning ordinances to remove barriers to such "smart growth"
developments --- for instance, laws that prevent apartments from being built
above shops. In essence, it absorbs some of the cost that could have caused a
developer to lose interest. Enter
the Location Efficient Mortgage, already available in a handful of cities
through Fannie Mae and possibly on its way to metro Atlanta by next winter.
Bernstein said people who choose to buy in areas identified as efficient
locations can qualify for loans that don't count against their debt load the
money they owe on their second car. The idea, he said, is that people who move
to areas where transit is convenient soon will cut back on driving and have
more disposable income to put into housing instead.]
Mills, E., & L.
Lubuele. 1994. "Performance of Residential Mortgages In Low- and Moderate
Income Neighborhoods," Journal of Real Estate Finance and Economics,
9, 245-260.
Moloney, Sarah. 2000.
"Greener Mortgages" Chicago Tribune, (10
Jun. 2000): 25. LA Public
Library, Los Angeles, CA. 29
Mar. 2004 <http://www.proquest.com/>. [The Location Efficient Mortgage is an idea whose time
has arrived (Metro, June 1).
Rimer, L.B. 1999.
"An Anti-Sprawl Mortgage," The News and Observer, (1999,
October 17) (Raleigh, NC).
Sorohan, Mike. 2001.
"Location, Location, 'Location Efficient' Mortgages," Real Estate
Finance Today, (15 Jan. 2001): 14. LA Public Library, Los Angeles,
CA. 29 Mar. 2004 <http://www.proquest.com/>. [Most are familiar with the utterly insane
San Francisco, California, housing market. The prices are ridiculous, said
David Goldstein, energy program director at the Natural Resources Defense
Council (NRDC). The Location Efficient Mortgage program, a 2-year pilot
sponsored by Fannie Mae in conjunction with other agencies, including the NRDC
enables lenders to stretch their standard debt-to-income ratios for borrowers
who use public transportation and other location efficient consumer services
and cultural amenities.]
Thangavelu,
Poonkulali. 1999. "Location Efficient Loan Serves Seattle Bus and Train
Riders," National Mortgage News, v24n13 (December 13, 1999):
25. [Discusses the introduction of LEM in Seattle. Provides an
example of impacts: "A home located in the Ballard neighborhood of
Seattle, for instance, has an LEV of $266 per month. According to the LEM
calculator, this property could add $3,192 to the borrower's annual qualifying
income. Based on a traditional financing package, a family with an annual
income of $60,000 would be approved for a mortgage for a home priced at
$142,877, compared with the $160,709 home that the applicant would qualify for
using a Location Efficient Mortgage."]
Wilgoren, Debbi. 2003.
"Fannie Mae Helps Home Buyers Near Transit," The Washington Post, (24
Jul. 2003): B.01. LA Public
Library, Los Angeles, CA. 29
Mar. 2004 <http://www.proquest.com/>. [Fannie Mae has launched similar initiatives in the last year in
nine other, smaller markets, including Minneapolis, Philadelphia, Salt Lake
City and the state of Delaware. The program is scheduled to expand to 10 more
cities. SunTrust Mortgage
Inc. and Chevy Chase Bank/B.F. Saul Mortgage Company will provide loans for the
program, and the mortgages will then be purchased by Fannie Mae. Representatives of the Coalition
for Smarter Growth, an anti- sprawl advocacy group, said officials should push
for a more stringent Fannie Mae program than was launched several years ago in
Chicago, San Francisco, Seattle and Los Angeles. The Location Efficient
Mortgage allows participants to claim greater transportation savings but
applies only to homes that are close to restaurants, jobs and shops, as well as
public transportation.]
Woellert, L. 1999.
"Now the Close-to-the-Bus Mortgage," Business Week, (1999,
December 6): 6.
[April 30, 2004]