Jumbo Mortgages Are Hard To Come By?

Professor Edward Morrison doesn’t think so. Last month the law professor and economist at Columbia University in New York City purchased a two-family townhouse in Harlem for $2.575 million. Real estate brokers said it was a record price for a townhouse in that neighborhood, which borders the Columbia University campus.

Morrison is an expert on bankruptcy court and credit markets and recently testified before the House of Representatives on proposed mortgage foreclosure legislation. Well, hopefully he’s taking his own advice and not biting off too much. How much do Columbia professors make? I guess that’s why I couldn’t afford an Ivy League education. To recruit and retain highly-regarded professors, Universities are subsidizing their housing, especially in New York City. I’ve heard of similar programs at the University of Pennsylvania and West Chester University as well, but not even close to these prices. Morrison received favorable rates from Countrywide Bank (now part of Bank of America) for their first mortgage of $1 million. They received a second mortgage from Columbia University for $1.04 million. Sweet deal. I’m in the wrong business. Columbia University says their usual housing assistance for professors are allowances of $40,000 per year and a one-time payment of $40,000.

A foundation of the Law School at New York University provided one of their professors $4.2 million towards a purchase of an apartment for her use on scenic Central Park West. Geez, how about a 400 square foot studio like the rest of us.