Moral Hazard in Home Equity Conversion

Home equity conversion as presently constituted or proposed usually does not deal well with the potential problem of moral hazard. Once homeowners know that the risk of poor market performance of their homes is borne by investors, they have an incentive to neglect to take steps to maintain the homes' values. They may thus create serious future losses for the investors. A calibrated model for assessing this moral hazard risk is presented that is suitable for a number of home equity conversion forms: 1) reverse mortgages, 2) home equity insurance, 3) shared appreciation mortgages, 4) housing partnerships, 5) shared equity mortgages and 6) sale of remainder interest. Modifications of these forms involving real estate price indices are proposed that might deal better with the problem of moral hazard.Reverse mortgages, home equity insurance, shared appreciation mortgages, housing partnerships, shared equity mortgages, sale of remainder interest, moral hazard, real estate price indices, home maintenance, home improvements

Second coefficient of viscosity in air

Acoustic attenuation measurements in air were analyzed in order to estimate the second coefficient of viscosity. Data over a temperature range of 11 C to 50 C and at relative humidities between 6 percent and 91 percent were used. This analysis showed that the second coefficient of viscosity varied between 1900 and 20,000 times larger than the dynamic or first coefficient of viscosity over the temperature and humidity range of the data. In addition, the data showed that the molecular relaxation effects, which are responsible for the magnitude of the second coefficient of viscosity, place severe limits on the use of time-independent, thermodynamic equations of state. Compressible flows containing large streamwise velocity gradients, like shock waves, which cause significant changes in particle properties to occur during time intervals shorter than hundredths of seconds, must be modeled using dynamic equations of state. The dynamic model approach is described briefly

Real Estate Income and Value Cycles: A Model of Market Dynamics

We develop a theoretical real estate cycles model linking economic fundamentals to real estate income and value. We estimate and test an econometric model specification, based on the theoretical model, using MSA level data for twenty office markets in the United States. Our major conclusion is that cities that exhibit seemingly different cyclical office market behavior may be statistically characterized by our three-parameter econometric specification. The parameters are MSA-specific amplitude, through the CAP rate, cycle duration (peak-to-peak), via the rate of partial adjustments to changing expectations about stabilized NOI and the market trend.

Moral Hazard in Home Equity Conversion

Home equity conversion as presently constituted or proposed usually does not deal well with the potential problem of moral hazard. Once homeowners know that the risk of poor market performance of their homes is borne by investors, they have an incentive to neglect to take steps to maintain the homes’ values. They may thus create serious future losses for the investors. A calibrated model for assessing this moral hazard risk is presented that is suitable for a number of home equity conversion forms: 1) reverse mortgages, 2) home equity insurance, 3) shared appreciation mortgages, 4) housing partnerships, 5) shared equity mortgages and 6) sale of remainder interest. Modifications of these forms involving real estate price indices are proposed that might deal better with the problem of moral hazard

The evolution of inverted magnetic fields through the inner heliosphere

Local inversions are often observed in the heliospheric magnetic field (HMF), but their origins and evolution are not yet fully understood.Parker Solar Probe has recently observed rapid, Alfvénic, HMF inversions in the inner heliosphere, known as ‘switchbacks’, which have been interpreted as the possible remnants of coronal jets. It has also been suggested that inverted HMF may be produced by near-Sun interchange reconnection; a key process in mechanisms proposed for slow solar wind release. These cases suggest that the source of inverted HMF is near the Sun, and it follows that these inversions would gradually decay and straighten as they propagate out through the heliosphere. Alternatively, HMF inversions could form during solar wind transit, through phenomena such velocity shears, draping over ejecta, or waves and turbulence. Such processes are expected to lead to a qualitatively radial evolution of inverted HMF structures. Using Helios measurements spanning 0.3–1 AU, we examine the occurrence rate of inverted HMF, as well as other magnetic field morphologies, as a function of radial distance r, and find that it continually increases. This trend may be explained by inverted HMF observed between 0.3–1 AU being primarily driven by one or more of the above in-transit processes, rather than created at the Sun. We make suggestions as to the relative importance of these different processes based on the evolution of the magnetic field properties associated with inverted HMF. We also explore alternative explanations outside of our suggested driving processes which may lead to the observed trend