Stephanie Moulton

Preserving the Publicness of the Nonprofit Sector: Resources, Roles, and Public Values

Nonprofit organizations are increasingly advised to become fiscally self-sufficient and reduce resource dependence to preserve autonomy. However, little is known empirically about the relationships between particular resource streams and the roles espoused by nonprofit organizations that define their public value, including service delivery, innovation, advocacy, individual expression, social capital creation, and citizen engagement. To address this gap in the literature, we collect and analyze survey data from more than 100 nonprofit organizations, developing and testing a new “Nonprofit Sector Public Role Index” that assesses their perceived performance on six different roles simultaneously. Furthermore, we evaluate characteristics that make nonprofits more or less likely to fulfill various roles, with primary emphasis on financial resources. We find evidence that particular resource streams are strongly associated with particular nonprofit roles. Therefore, resource dependence—particularly dependence on public support—may play an important value preservation role in the nonprofit sector.

Heterogeneous Roles and Heterogeneous Practices: Understanding the Adoption and Uses of Nonprofit Performance Evaluations

Evaluating the performance of nonprofit organizations has been of growing importance for the last several decades. Although there is much good that can come out of self-improvement, there is substantial heterogeneity within the sector that calls into question the usefulness of ‘‘across the board’’ evaluation tools. In this article, the authors assess nonprofit evaluation practices, at both the organizational and the programmatic levels. Through a multitheoretical framework, the authors explore the extent to which the adoption and uses of evaluation reflect strategic alignment with heterogeneous nonprofit roles or the institutionalization of the organizational environment. The authors find evidence that institutional perceptions are consistent predictors of whether nonprofit organizations adopt particular practices. Diverse roles are not consistently associated with the adoption of particular practices, but the uses of evaluation are diverse and specific to nonprofit organizations’ unique strategies and roles.

Originating lender localness and mortgage sustainability: an evaluation of delinquency and foreclosure in Indiana's mortgage revenue bond program

Originating lenders play a vital role in selecting and preparing borrowers for homeownership, directly and through partnerships with community entities. While previous research demonstrates the importance of originating lenders for mortgage access to low- and moderate-income borrowers, this analysis evaluates the influence of the originating lender, and in particular the localness of the lender, on mortgage sustainability (reduced delinquency and foreclosure). Employing data on more than 5,000 low- and moderate-income borrowers participating in Indianas Mortgage Revenue Bond (MRB) program from 2004–2006, this analysis finds that the localness of the originating lender is significantly predictive of mortgage sustainability. After controlling for borrower, mortgage, and market characteristics, an increase in the localness of the lender is associated with a decrease in the probability of delinquency and foreclosure, particularly for higher risk (lower credit score) borrowers participating in the MRB program.

Beyond the Transaction: Depository Institutions and Reduced Mortgage Default for Low-Income Homebuyers

We evaluate the effects of the lending institution and soft information on mortgage loan performance for low-income homebuyers. We find that even after controlling for bank selection, those who receive a loan from a local bank are significantly less likely to become delinquent or default than other bank or nonbank borrowers, suggesting an information effect. These effects are most pronounced for higher-risk borrowers, who likely benefit more from informational advantages of local banks. These findings support previous research on small business lending and provide additional explanation for observed differences in mortgage loan performance between bank and nonbank lenders.

The Accuracy of Senior Households’ Estimates of Home Values: Application to the Reverse Mortgage Decision

Using a unique data set of more than 14,000 senior homeowners in the United States, this study compares self‐assessed home values to arms length contemporaneous appraisals. In a sample of seniors who received counseling for a reverse mortgage, the absolute value of the assessment error averages 18.9% of appraised value and it is biased upwards by 13.4%. When adjusted to reflect the general population of seniors, the size and bias of the average error fall to 16.1% and 4.2%. Both the bias and the size of the error tend to be lower for households with higher income and credit scores but it is greater for black households. In our sample period of 2009–2011, house prices were falling. The greater the rate of price reduction, the greater is the upward bias and size of the assessment error. When seniors who applied for a reverse mortgage learn that they overvalued their home, their probability of closing the loan falls.

Pre-purchase Homebuyer Education and Counseling: Diverse Strategies for Diverse Homebuyers

Pre-purchase homebuyer education and counseling have evolved significantly over the past few decades. While there is much support for homebuyer education and counseling generally, particularly in light of the recent mortgage crisis, less attention has been given to the diversity of interventions, targeted homebuyers, and desired outcomes. Pre-purchase homebuyer education is not (nor should it be) a “one size fits all” strategy; rather, drawing from insights from consumer behavior and financial education, this chapter argues that different approaches and content are appropriate to the decision at hand.

Assessing program & policy implementation research

This paper provides a systematic review of the state of policy and program implementation research over the last ten years. We take two sampling approaches. First, we identify 1,375 published artic...

The Accuracy of Senior Households' Estimates of Home Values: Application to the Reverse Mortgage Decision

Using a unique dataset of more than 14,000 senior homeowners in the U.S., this study compares self-assessed home values to arm’s length contemporaneous appraisals. In a sample of seniors who received counseling for a reverse mortgage, the absolute value of the assessment error averages 18.9 percent of appraised value and it is biased upwards by 13.4 percent. When adjusted to reflect the general population of seniors, the size and bias of the average error fall to 16.1 and 4.2 percent. Both the bias and the size of the error tend to be lower for households with higher income and credit scores but it is greater for black households. In our sample period of 2009-11, house prices were falling. The greater the rate of price reduction, the greater is the upward bias and size of the assessment error. When seniors who applied for a reverse mortgage learn that they overvalued their home, their probability of closing the loan falls.

Unlocking Home Equity: Credit Constraints, House Prices and the Federally Insured Reverse Mortgage

Households borrow against equity through different channels: closed end home equity loans or revolving lines of credit, cash-out refinancing, and — for senior homeowners — reverse mortgages. We jointly estimate the decision to extract equity through these channels, identifying the influence of credit constraints and house price dynamics on the proportion of seniors in a ZIP code extracting through a given channel from 2004 to 2012. As house prices increased, cash-out refinancing increased in credit-constrained areas, while HELOCs increased in less-credit-constrained areas. When house prices fell, reverse mortgage originations increased — particularly in credit-constrained areas.

International Perspectives on Homeownership and Home Equity Extraction by Senior Households

Purpose This paper links the literatures on the life-cycle hypothesis, homeownership, home equity and pensions. Empirically, the focus is on the EU and USA. The paper aims to explore the extent that seniors extract their home equity and discuss the financial instruments available for equity extraction. Design/methodology/approach The study uses data from the EU and USA to determine homeownership rates, house values and mortgage debt. With these values, the amount of seniors’ home equity is measured for each country. The usage of home equity extraction methods is reported and factors limiting their use are identified. Findings Seniors’ home equity is a substantial share of their total wealth. Estimates for 2013 are that their home equity equals about €5tn in the USA and over €8tn in large EU countries. The authors find that only a small share of seniors extracts their home equity. While there are supply side constraints in many countries, the evidence suggests that the cause of low extraction rates is the lack of demand. Various reasons for the lack of demand are discussed. Practical implications The increasing share of seniors in most countries’ population suggests that there will be increasing pressure on public pension systems. One among many options to address this issue is to impose a wealth test for eligibility, where wealth includes home equity. This study suggests that although home equity is substantial for many seniors, they are reluctant to access the funds. Originality/value The paper highlights the importance of home equity in the EU and USA and the factors that affect the primary methods of extraction.