Brief The MicroMortgage Marketplace Demonstration Project
Building a Framework for Viable Small-Dollar Mortgage Lending
Alanna McCargo, Linna Zhu, Sarah Strochak, Rita Ballesteros
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Small-dollar mortgages are scarce, making the transition to sustainable homeownership difficult for low-and moderate-income households in low-cost markets across the country. Urban Institute researchers served as the research partner for the MicroMortgage Marketplace (MMM), a demonstration project to explore the viability of a -small-dollar mortgage product in Louisville, Kentucky and Southern Indiana. The product was designed to reduce ancillary fees and costs to consumers and remove frictions that limit lending in this space. This brief describes the need for the program in majority Black neighborhoods around Louisville and the proposed approach, documents the first phase of product design and delivery, outlines challenges, and explores recommendations for expanding access to small dollar mortgages in other regions.

Research Areas Wealth and financial well-being Neighborhoods, cities, and metros Race and equity Housing finance Housing
Tags Asset and debts Racial and ethnic disparities Housing markets Housing and the economy Credit availability Homeownership Financial products and services Housing affordability Mobility Inequality and mobility Community and economic development Racial barriers to housing Racial homeownership gap Racial inequities in neighborhoods and community development
Policy Centers Housing Finance Policy Center