Risk in the global real estate market : International risk regulation, mechanism design, foreclosures, title systems, and REITs.

Title:

Author:

Nwogugu, Michael C. I.

ISBN:

9781118011355

Personal Author:

Nwogugu, Michael C. I.

Publication Information:

Hoboken N.J. : John Wiley & Sons, 2011.

Physical Description:

433 s.

Series:

Wiley finance

Wiley finance series

General Note:

Preface xvii CHAPTER 1 Regulation and Constitutional Torts 1 Federalism, Preemption, and Risk 2 The Restoring American Financial Stability Act of 2010 (RAFSA) 6 The Existing "Tests" for Unconstitutionality 6 Quasi Constitutions 10 Social Capital 10 References 11 CHAPTER 2 A Critique of Mechanism Design 13 Conclusion 16 Reference 16 CHAPTER 3 General Public Health and Social Psychology Issues in Global Housing Markets and Mortgage Markets 17 Survey of Public Health Problems Caused by Traditional Mortgages and Foreclosures 18 Conclusion 32 References 32 CHAPTER 4 Public Health Issues: Psychological Factors Inherent in Housing Demand, Mortgage Demand,.

and House Prices 37 Proposition 1: Credit Bias 44 Proposition 2: The S&L Crisis Effect 44 Proposition 3: Tenure Bias 45 Proposition 4: Low Willingness to Accept Losses (WTAL) 46 Proposition 5: Investment Horizon Effect 46 Proposition 6: The Deferred-Disutility/Deferred Pain Bias 47 Proposition 7: The Lender-Experience Effect 48 Proposition 8: The Government Intervention Effect 49 Proposition 9: The Multiple-Listing-Service (MLS) Effect 50 Proposition 10: Psychological Limitations on Supply of Housing Units 50 Validity of Housing Demand Models 52 Conclusion 53 References 53 CHAPTER 5 Behavioral Biases in Property Taxation and Property Appraisal 59 Biases in Property Taxation 60 Psychological Effects and Biases Inherent in Property Appraisal 64 Conclusion 76 References 77 CHAPTER 6 Foreclosure Statutes and Processes 83 Foreclosures Reduce the Efficiency of Monetary Policies and Fiscal Policies 83 Some Adverse Contagion Effects of Foreclosures 84 The Statutory Ban of Waiver of Judicial.

Foreclosure in Conveyancing Documents and the Omission of Nonjudicial Foreclosure from States' Laws Are Unconstitutional 85 The Borrower's Post-Foreclosure Right of Redemption Is Unconstitutional 93 The Unconstitutionality of Preemptive Foreclosure Rules 98 Enforcement of Core Foreclosure Processes and the Failure to Enact Uniform Federal Foreclosure and Mortgage Statutes Constitute Violations of the U.S. Constitution 103 Alternative Foreclosure Systems 109 New Theories of Takings 109 Conclusion 112 References 112 CHAPTER 7 Unconstitutionality of U.S.

Bankruptcy Code, Preemption of State-Law Mortgage Foreclosure Statutes, and Related Economic Effects 115 Existing Literature 116 Survey of Macroeconomic Effects of Bankruptcy Codes 118 The Financial Accelerator Theory Is Inaccurate 126 Criteria for Preemption: Equitable Subordination, Fraudulent Transfers (the "Reasonably Equivalent Value" Doctrine), the Deprizio Controversy, and the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 127 The U.S.

Supreme Court's Standards for Preemption Cases 132 New Standards for Preemption Cases 135 Constitutional Law Issues 139 Due Process Rights 140 The Separation-of-Powers Doctrine 144 A New Theory of Takings 144 Conclusion 145 Note 146 References 147 CHAPTER 8 Mortgages and Deeds of Trust 151 Improper Coupling/Combinations of Mortgage Markets, Rental Markets, Savings/Investment Markets,.

and Property-Value Markets 152 Mortgages Cause Fraud and Misallocation of Risk 153 Traditional and Alternative Mortgages Are Inefficient and Create Wrong Incentives 154 Mortgages Reduce the Efficiency of Monetary Transmission 155 The Mortgage Wealth Illusion: Inefficient Household Allocations and Reduction of the Marginal Propensity to Save 160 Traditional and Alternative Western Mortgages Reduce Socioeconomic Flexibility that Substantially Affects Psychological Well-Being 161 Traditional and Alternative Mortgages Distort the Marriage Market 162 Traditional Western Mortgages and Alternative Mortgages Distort the Job Market 163 The Statutory or Common Law Prohibition of Prepayment Penalty/Yield Maintenance or Limitations on Prepayment Penalty on Default Are Unconstitutional 165 The Lack of Definition of the "Future Advances" Clause in Mortgages Constitutes a Violation of the U.S. Constitution 172 The Government's Fail.

Abstract:

Essential reading for professional investors, risk managers, regulators, central bankers, and real estate professionals, Risk in the Global Real Estate Market: International Risk Regulation, Mechanism Design, Foreclosures, Title Systems, and REITs takes an international look at the ways in which U.S.-style constitutional laws, financial laws, and real estate laws in various countries affect global economics and risk; and analyzes specific constraints that deter market development such as Asset Liability Matching, inappropriate financial products, land title systems, inefficient constitutions and human biases. The sub-prime mortgage crisis (that began around 2006) and the Global Financial Crisis of 2007-2010 disrupted the economies of various countries and exposed many of the psychological, social, and economic problems inherent in the legal/risk infrastructure for mortgages, land title systems, REITs, securitization, and pensions.

În this remarkable new book, Michael Nwogugu explains how these processes and statutes are unconstitutional and inefficient, and how they influence demand for housing, real estate prices, retirement savings, household wealth, consumer disposable income, marriage opportunities, job markets, crime, and regional economic growth. The resulting major economic and public health problems have continued to reduce the quality-of-life of nations, and continue to cause permanent declines in wealth, increases in crime and delinquency, high divorce rates, depression, and inadequate job creation, among other problems. The book examines a range of fields-including mechanism design, psychology, risk finance, and corporate governance; and emphasizes Constitutional economics as a distinct dimension of risk analysis.

Risk in the Global Real Estate Market makes a compelling case about how constitutional torts increase information asymmetry, transaction costs, agency problems, and compliance costs, as well as inefficiency in real estate transactions. These problems, the book argues, are not unique to the United States, but also affect Commonwealth countries and other nations that have developed regulations that are similar to, or are based on U.S. commercial, securities, and or constitutional laws. Risk in the Global Real Estate Market presents a novel analysis of the sub-prime crisis (that first began in 2006), the failure of securitization (CMBS/MBS) markets, the Global Financial Crisis, and socio-economic problems caused by traditional mortgages and securitization.

The book reveals that many of the statutes and processes that define mortgages, foreclosures, securitization, and REITs in the United States (and many common-law countries and nations that have adopted American-style real estate regulations) are fundamentally unconstitutional and inefficient, and have lasting negative effects on consumer psychology, the demand for real estate, price discovery in property markets, economic growth, and quality of life. The book examines the nature of constitutional torts and property rights as the foundation for business transactions and economic growth within the context of risk regulation, interstate commerce, takings, and legislation.

Risk in the Global Real Estate Market introduces new theories of consumer psychology and institutional dynamics in real estate transactions; presents new theories of takings, and also surveys psychology/psychiatry studies (based on data from various countries) that confirm the harmful effects of mortgages, securitization, and foreclosures. Using elements of mechanism design, Michael Nwogugu develops new efficient financial products (Mortgage-Alternatives products), and presents a policy framework for a unified "Mortgage-Alternatives" market for the CEE/CIS region and China. He also explains why Asset Liability Matching hinders lending, capital formation and risk management, especially in developing countries.

Subject Term:

Real estate business.

Risk.

Mortgages.

Foreclosure.

Real estate investment trusts.

Copies:

Available:*

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Summary

The sub-prime mortgage crisis (that began around 2006) and the Global Financial Crisis of 2007?2010 disrupted the economies of various countries and exposed many of the psychological, social, and economic problems inherent in the legal/risk infrastructure for mortgages, land title systems, REITs, securitization, and pensions. In this remarkable new book, Michael Nwogugu explains how these processes and statutes are unconstitutional and inefficient, and how they influence demand for housing, real estate prices, retirement savings, household wealth, consumer disposable income, marriage opportunities, job markets, crime, and regional economic growth. The resulting major economic and public health problems have continued to reduce the quality-of-life of nations, and continue to cause permanent declines in wealth, increases in crime and delinquency, high divorce rates, depression, and inadequate job creation, among other problems. The book examines a range of fields'including mechanism design, psychology, risk finance, and corporate governance; and emphasizes Constitutional economics as a distinct dimension of risk analysis.

Risk in the Global Real Estate Market presents a novel analysis of the sub-prime crisis (that first began in 2006), the failure of securitization (CMBS/MBS) markets, the Global Financial Crisis, and socio-economic problems caused by traditional mortgages and securitization. The book reveals that many of the statutes and processes that define mortgages, foreclosures, securitization, and REITs in the United States (and many common-law countries and nations that have adopted American-style real estate regulations) are fundamentally unconstitutional and inefficient, and have lasting negative effects on consumer psychology, the demand for real estate, price discovery in property markets, economic growth, and quality of life. The book examines the nature of constitutional torts and property rights as the foundation for business transactions and economic growth within the context of risk regulation, interstate commerce, takings, and legislation.

Risk in the Global Real Estate Market introduces new theories of consumer psychology and institutional dynamics in real estate transactions; presents new theories of takings, and also surveys psychology/psychiatry studies (based on data from various countries) that confirm the harmful effects of mortgages, securitization, and foreclosures. Using elements of mechanism design, Michael Nwogugu develops new efficient financial products (Mortgage-Alternatives products), and presents a policy framework for a unified ?Mortgage-Alternatives? market for the CEE/CIS region and China. He also explains why Asset Liability Matching hinders lending, capital formation and risk management, especially in developing countries.