MyMoney Resources - Researcher

Abstract: The State of Minnesota’s Emerging Markets Homeownership Initiative (EMHI) seeks to boost homeownership rates among Minnesota’s “emerging markets,” defined as households of color, non-English speaking households, and households in which English is a second language. Many of the implementation strategies in the EMHI Business Plan address general barriers to homeownership and should increase the number of emerging market households that become first-time homeowners. EMHI doesn’t stop there, however. It also recognizes the need to sustain homeownership after initial purchase, in keeping with growing evidence that the cliché “once an owner, always an owner” is far from true, especially for minority and low-income households. In particular, the EMHI Business Plan includes a strategy for developing and implementing a post-purchase services network that will enhance their prospects for successful, sustainable homeownership. As a foundation for the implementation effort, this report explains why Minnesota is in a good position to use post-purchase support programs to pursue EMHI’s goals.

Abstract: The Jobs and Growth Tax Relief and Reconciliation Act of 2003 has been described as textbook fiscal stimulus. Using household survey data on the self-reported qualitative response to the tax cuts, we estimate that the boost to aggregate personal consumption expenditures from the child credit rebate and the reduction in withholdings raised the average level of real GDP in the second half of 2003 by 0.2 percent and by 0.3 percent in the first half of 2004. We also show that households in the survey were well aware of their tax cuts and tended to spend equally out of the child credit rebate and the reduced withholdings, a result that is contrary to the conventional wisdom.

This paper tests for the presence of age and gender discrimination in the loan underwriting process. We modify the tools used during the past exams to test for racial discrimination and apply them here to test for the presence of disparate treatment on the basis of age and gender. Using HMDA data along with data from 18 fair lending exams recently conducted by the OCC, between1996 – 2001, we find no evidence of systematic discrimination on the basis of age or gender. Further, the tools used and tested for in this analysis are now readily available for use in future fair lending exams.

This report responds to a mandate in the Fair and Accurate Credit Transactions Act (FACT Act) of 2003 requiring GAO to assess consumers’ understanding of credit reporting. Based on survey responses for a national sample of 1,578 consumers, GAO found that consumers understood the basics of credit reporting and the dispute process, although most consumers did not fully understand their rights in the dispute process. GAO also found that several factors were associated with consumers’ knowledge. For instance, having less education, lower incomes, and less experience obtaining credit were associated with lower survey scores, while having certain types of credit experiences—such as an automobile loan or a mortgage were associated with higher scores. Other factors, such as gender and living in a state where credit reports were free prior to the FACT Act, did not have a significant effect on consumers’ knowledge. Targeted educational efforts could potentially increase consumers’ understanding of the credit reporting process.

In July 28, 2004, GAO hosted a forum on the role of the federal government in improving financial literacy. Forum participants included experts in financial literacy and education from federal and state agencies, the financial industry, nonprofit organizations, and academic institutions. This report summarizes highlights of participants' discussion on the topics federal efforts should cover, populations that should be targeted, methods of delivering information, and the role of program evaluation. Forum participants offered a number of suggestions regarding the federal government’s role in improving Americans’ financial literacy, including (1) The federal government should serve as a leader (2) Increased public-private partnerships and interagency coordination are needed. (3) Consumers need financial information on a broad range of topics and at "teachable moments" liver financial education effectively. (5) Financial literacy programs need to be evaluated