Association for Public Policy Analysis & Management

Although the foreclosure crisis has receded, research has just begun to understand how the costs of the crisis were distributed among Asian and Latino homeowners, especially in the U.S. Sunbelt, where foreclosure rates rose to unprecedented levels. Using novel data based on original mortgages and linked property parcel foreclosure records in Orlando, Florida, this article empirically investigates the mechanisms that structured the burden of the crisis on certain segments of the Asian and Latino populations. Descriptive and multivariate analyses support three findings. First, using surname imputation methods, foreclosure rates are highest for Latinos, Vietnamese, and Korean homeowners, higher than black or white owners; in contrast, rates are lower among other Asian groups. Second, institutional differences among lenders and coding of loan officer surnames strongly suggests that Latinos experienced higher foreclosure rates partly as a result of co-ethnic affiliation with officers, especially among subprime lenders. Finally, using a unique proxy for nativity and immigrant status, the results strong suggest that newer and immigrants less likely to be citizens were especially vulnerable to foreclosure.