Monday, November 08, 2010

Paul Willen says self-amortizing mortgages were abundant before the 1930s

He sends me the following table:

It has long been "established" that self-amortizing mortgages were rare before the existence of the Home Owners Loan Corporation, whereas this source suggests they made up 40 percent of loan originations between 1925-1929.  What this table doesn't tell us is how long the amortization period was.  So the importance of the HOLC may have been the establishment of long-term self-amortizing mortgages.

I would love to get actual mortgage contracts with their terms from the 1920s.


SkySlope said...

Thanks for taking the time to discuss this,would you mind updating your blog with additional information? It is extremely helpful for real estate software for brokers

cccarter2010 said...

Yo, Richard. Looks like real estate has its own Paul Krugman. Krugman just called Sarah Palin "factually challenged." I like it! Keep up the good work. On Wisconsin.