Indiana University SPEA Edward J. Bloustein School of Planning and Public Policy University of Pennsylvania AIR American University

Panel Paper: Analyzing CRA Lending before, during and after the Subprime Lending and Foreclosure Crises in Central Cities, Mature Suburbs, and Developing Suburbs in the United States

Friday, November 13, 2015 : 9:10 AM
Stanford (Hyatt Regency Miami)

*Names in bold indicate Presenter

Katrin B. Anacker and Chang Kwon, George Mason University
Over the past several years, independent mortgage companies (IMCs) originated an increasing proportion of subprime loans, a high proportion of which went into foreclosure. In this study, we compare and contrast the characteristics of neighborhoods that have high proportions of loans by Community Reinvestment Act (CRA)-regulated institutions with those that have high proportions made by IMCs. Our geography is the 100 largest metropolitan statistical areas (MSA), differentiating by central cities, mature suburbs, and developing suburbs. Our unit of observation is the Census tract. We utilize 2005 to 2011 Home Mortgage Disclosure Act (HMDA) data and 2005 to 2011 Census and American Community Survey (ACS) data, all publicly accessible. We perform descriptive statistics, t-tests, and regression analyses to find whether neighborhoods dominated by IMCs are different from neighborhoods dominated by CRA lenders, differentiating by central cities, mature suburbs, and developing suburbs.   


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