12/03/2009 Book Project: SwapRent – A new alternative housing finance system – What it means to you

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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