IDEAS home Printed from https://ideas.repec.org/a/cup/jechis/v70y2010i04p783-812_00.html
   My bibliography  Save this article

Covered Farm Mortgage Bonds in the United States During the Late Nineteenth Century

Author

Listed:
  • Snowden, Kenneth A.

Abstract

Covered mortgage bonds have been used successfully in Europe for two centuries, but failed in the United States when introduced as farm mortgage debentures in the 1880s. Using firm-level data and a sample of loans made by one Kansas mortgage company, I find that debenture programs grew out of established loan brokerage operations and were used to fund mortgages that were difficult to broker because of size, term, or risk characteristics. Debentures broadened access to the interregional mortgage market and facilitated an expansion of western farm mortgage debt before the innovation failed in the mortgage crisis of the 1890s.“[T]he availability of affordable mortgage financing is essential to turning the corner on the current housing crisis …. One option we have looked at extensively is covered bonds, which … have the potential to increase mortgage financing, improve underwriting standards, and strengthen U.S. financial institutions ….”Secretary of Treasury Henry PaulsonJuly 28, 2008

Suggested Citation

  • Snowden, Kenneth A., 2010. "Covered Farm Mortgage Bonds in the United States During the Late Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 70(4), pages 783-812, December.
    • Handle: RePEc:cup:jechis:v:70:y:2010:i:04:p:783-812_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022050710000720/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rose, Jonathan D. & Snowden, Kenneth A., 2013. "The New Deal and the origins of the modern American real estate loan contract," Explorations in Economic History, Elsevier, vol. 50(4), pages 548-566.
    2. Rose, Jonathan & Snowden, Kenneth, 2012. "The New Deal and the Origins of the Modern American Real Estate Loan Contract in the Building and Loan Industry," UNCG Economics Working Papers 12-6, University of North Carolina at Greensboro, Department of Economics.
    3. Bhanot, Karan & Larsson, Carl F., 2018. "Uncovering the impact of regulatory uncertainty on credit spreads: A study of the U.S. covered bond experience," Journal of Financial Markets, Elsevier, vol. 39(C), pages 84-110.
    4. Andra Ghent & Rossen Valkanov, 2016. "Comparing Securitized and Balance Sheet Loans: Size Matters," Management Science, INFORMS, vol. 62(10), pages 2784-2803, October.
    5. Ordoñez, Guillermo, 2018. "Confidence banking and strategic default," Journal of Monetary Economics, Elsevier, vol. 100(C), pages 101-113.
    6. Timothy Blackwell & Sebastian Kohl, 2018. "Urban heritages: How history and housing finance matter to housing form and homeownership rates," Urban Studies, Urban Studies Journal Limited, vol. 55(16), pages 3669-3688, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jechis:v:70:y:2010:i:04:p:783-812_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jeh .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.