Differences in subprime loan pricing across races and neighborhoods

Autor:	Andra C. Ghent, Rubén Hernández-Murillo, Michael T. Owyang
Rok vydání:	2014
Předmět:	Urban Studies Economics and Econometrics Race (biology) Loan Ethnic group Demographic economics Business Subprime mortgage Housing policy Discrimination in mortgage loans Metropolitan area health care economics and organizations Fair Housing Act
Zdroj:	Regional Science and Urban Economics. 48:199-215
ISSN:	0166-0462
DOI:	10.1016/j.regsciurbeco.2014.07.006
Popis:	We investigate whether race and ethnicity influenced subprime loan pricing during 2005, the peak of the subprime mortgage expansion. We combine loan-level data on the performance of non-prime securitized mortgages with individual- and neighborhood-level data on racial and ethnic characteristics for metropolitan areas in California and Florida. Using a model of rate determination that accounts for predicted loan performance, we evaluate the differences in subprime mortgage rates in terms of racial and ethnic groups and neighborhood characteristics. We find evidence of adverse pricing for Blacks and Hispanics. The evidence of adverse pricing is strongest for purchase mortgages and mortgages originated by non-depository institutions.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::ef52126a3085f1921b29b7152d792e87 https://doi.org/10.1016/j.regsciurbeco.2014.07.006 Zobrazit plný text záznamu Full Text from ScienceDirect