I am preparing to publish a book on SwapRent as a new alternative housing finance system. The unfinished book manuscript on SwapRent (The SwapRent Story.pdf) is available upon request.
The new alternative system is not meant to replace any existing lending based systems but rather a new complementary addition running in parallel with the conventional housing finance system. The natural selection process will automatically determine which system will be more popular and conducive to our economic society in years to come.
Here are some unique features of the new alternative SwapRent housing finance system and their advantages:
1.) A new non-lending based housing finance system
– Attractive to both Muslim consumers for religious reasons and Western consumers for practical reasons
2.) A new co-ownership equity financing for homeownership
– No more possibility of a repeat of subprime lending fiasco made worse by securitizations
3.) A tradable economic version of shared homeownership
– Will increase housing affordability for low income families on a world-wide basis
4.) A free market based mortgage loan rescue method without taxpayer’s money to bailout homeowners
– A timely solution to our global economic and financial crisis
5.) SwapRent as a new economic policy tool
– To stimulate the economy and let Fed manage monetary policies more independently
Here below is an outline of some preliminary book chapters:
SwapRent – A new alternative housing finance system: What it means to you
The SwapRent Transactions for Homeowners, HELM and FARM – A New Alternative Housing Finance System
Part One: Introduction
1.) Background and Introduction of the SwapRent Concept
2.) How Does A SwapRent Contract Work
3.) The Benefits of SwapRent Transactions for Homeowners and Property Investors
4.) How Could SwapRent and HELM Help the Distressed Homeowners Keep the Ownership of Their Homes?
Part Two: A Review of the Existing Housing Finance Systems
5.) A Review of Existing Housing Finance Systems in Selected Developed Countries
6.) The Problems with Current Western Housing Finance Systems
7.) How Does Islamic Banking and Finance Deal with Housing and Property Investment Issues
8.) Housing Affordability vs. Affordable Housing – What it means to urban planners
9.) How Will SwapRent Based New Housing Methodologies Make a Difference
Part Three: Technical Aspects of SwapRent – Pricing and Risk Management
10.) A Brief Review of the Basic Concepts of the Time Value of Money
11.) Derivatives on Real Estate (Property Derivatives)
12.) The Pricing Methodology of A SwapRent Contract
13.) Variations of SwapRent – AG and DP SwapRent Transactions
14.) REIDeX, the SwapRent Marketplace
15.) Risk Management Aspects for Financial Intermediaries
16.) ALM and SwapRent-based Structured Investment Products
17.) Regulatory, Legal and Tax Issues
Part Four: Micro Level Applications and Examples
18.) Simple Potential SwapRent Application Examples
19.) SwapRent Embedded HELM vs. Conventional Shared Appreciation Mortgage (SAM) or Shared Equity Mortgage (SEM)
20.) FARM – A New Type of Housing Finance Products without the Possibility of Foreclosure or Property Repossession
21.) HELM vs. FARM The Two Opposite Entry Points of Economic Ownership
22.) SwapRent and HELM vs. Conventional Reverse Mortgage
23.) SwapRent Embedded HELM vs. Home Equity Loan
Part Five: Macro Level Applications and Their Implications
24.) How to Unclog Legacy Assets Trading Liquidity – Short-term mortgage loans arbitrage trading opportunity through offering SwapRent transactions to homeowners
25.) Advanced Application Example – How SwapRent program could reduce the re-default rate and create local neighborhood prosperity
26.) Residential Real Estate As A Separate Asset Class – The significance to institutional investors such as pension funds and insurance companies
27.) The Potential Role of State, County and City Governments – Local Government Sponsored Enterprises (LGSEs)
28.) Using SwapRent as An Economic Policy Tool – How small business owners could use SwapRent transactions to create jobs at grassroots level
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