Mortgage Refinancing,Adverse Selection,and FHA's Streamline Program

When interest rates decline, borrowers whose houses have appreciated significantly refinance out of FHA, while those whose houses have not do not. We provide evidence of the negative impact of regular (nonstreamline) refinancing in the mid-1980s on the average quality of FHA's surviving business. We demonstrate this adverse selection both informally and econometrically. We also argue that the sharp reduction in the cost of streamline refinancing (limited documentation, no required appraisal, and so on) in FHA's streamline refinance program in 1992 likely reduced the level of adverse selection in the FHA portfolio during the 1993 to 1994 refinancing boom, and we provide quantitative estimates of the resultant reduction in claim rates. While this reduction in cost almost certainly increased the financial viability of FHA during the middle 1990s, it may not in the long run.     

Technical information,technical assistance,and technology transfer—the need for a synthesis*

In the literature and often in practice, technical assistance, technical information, and technology transfer are treated as three separate activities. This paper discusses the relationship between them. Illustrations are given of the inability of overspecialized systems to effectively serve a broad range of needs. Some suggestions are made for research that is needed in this area. to help improve the design of systems and institutions and the training of people to carry out these functions. Some experimental ideas are presented which can help to resolve some of the policy and design problems in this area.     

Research on the interface factor in the development and utilization of new technology

AbstractThe interface factor in the development and utilization of new technology is analyzed with questionnaire surveys. The interface factor is found to determine R&D performance in a study of large manufacturing companies in the United States and in a study of computer utilization performance in commercial banks in the United States. A comparison of the interface factor in the functioning of R & D in the United States and Japan suggests that interface problems may be less serious in Japan. Company experience is reported which indicates that the interface function can be controlled by management policies, procedures and practices. The need for greater attention to the interface factor by executives and by researchers on R & D management is a conclusion which follows from the findings presented in this paper.