Effects of Homeownership Education on Foreclosure Prevention for First-time Homebuyers
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Date
2011-06
Authors
Johnson, Sarai
Miller, Marcella
Qiu, Jin
Spencer, Jessica
Stout, Odile
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Planning, Public Policy & Management, University of Oregon
Abstract
The purpose of this research project was to provide an outcomes-based and process evaluation
of the effectiveness of The ABC’s of Homebuying, the homeownership education program
administered by NEDCO (Neighborhood Economic Development Corporation). NEDCO is a
Community Development Corporation and HUD approved Housing Counseling Agency, which
serves two counties in Oregon. By tracking participant loan performance, specifically the
occurrence of 90-day default, the analysis aimed to draw inferences about the program’s
impact. Demographic, mortgage and property information was gathered on both defaulting and
non-defaulting participants in order to examine whether patterns of default are correlated with
demographic or financial characteristics. These data were used to perform a logistic regression
to determine whether certain indicators, such as annual income, are statistically significantly
associated with default. The analysis also compared the annual percentage of NEDCO
participants who defaulted to the annual percentage of Lane County homebuyers who defaulted
on their loans in the same time period. Three research questions were examined:
1) Do homebuyer education participants have lower rates of default than the general
population?
2) Among NEDCO participants, are there differences in demographic or mortgage
characteristics between groups that did and did not default on their loans?
3) Are any demographic or mortgage characteristics significant predictors of default within the
data of NEDCO participants?
Description
Examining committee: Colleen Chrisinger, faculty advisor
Keywords
Homeowners -- Education, Foreclosure