An Analysis of the Relationship Between Housing Foreclosures, Lending Practices, and Neighborhood Ecology: Evidence from a Distressed County

Figures & data

Figure 1 Summit County foreclosures. Each dot equals one foreclosure.

Table 1 Summit County loan data: 1999–2001

	All new loans 1999–2001		Foreclosed properties, loans originating 1999–2001
Loan type	Avg. loan	Avg. rate	Avg. loan	Avg. rate
Prime	117,162	7.87	70,447	9.55
Subprime	80,923	10.28	73,584	9.61

Figure 2 Comparison of mortgage rates from foreclosed properties. LIBOR = London Interbank Offered Rate.

Figure 3 Loan-to-value ratio greater than 100 percent, Summit County, 1999–2001.

Figure 4 Average interest rates, Summit County 1999–2001.

Figure 5 Percentage of subprime loans in Summit County, 1999–2001.

Figure 6 Foreclosures and median household income, Summit County.

Figure 7 Foreclosures and minority status, Summit County.

Table 2 Correlates of neighborhood foreclosure

	Foreclosure index	Control for subprime percentage
Subprime percentage	0.59
Black percentage 2000	0.58	0.42
Black percentage change 1990–2000	0.01	−0.04
Minority percentage 2000	0.59	0.43
Minority percentage change 1990–2000	0.15	0.09
Median household income 2000	−0.42	0.17
Unemployment percentage 2000	0.35	0.20
Poverty percentage 2000	0.36	0.19
Poverty percentage change 1990–2000	−0.23	−0.14
Vacant percentage 2000	0.33	0.22
Vacant percentage change 1990–2000	0.01	0.00
Women 65+ percentage	−0.19	−0.13
Percentage not in residence in 1995	0.00	−0.04
Mortgage payment over 30%	0.33	0.20
Loan-to-value ratio > 100%	0.41	0.26
Loan-to-value ratio > 80%	0.27	0.05
Note: Values in italics are significant at the 5 percent level.

Table 3 Regression of neighborhood variables on foreclosure index

	Model 1		Model 2
	B	Beta	B	Beta
(Constant)	0.0300		0.0124
Women 65+ percentage	–0.0493	–0.181	–0.0306	–0.113
Minority percentage 2000	0.0247	0.466	0.0171	0.322
Minority percentage change 1990–2000	−0.0141	−0.079	–0.0071	−0.040
City code	0.0052	0.186	0.0042	0.149
Unemployment percentage 2000	0.0095	0.039	0.0054	0.022
Median household income 2000	0.0000	–0.265	0.0000	−0.098
Mover percentage	–0.0199	–0.193	–0.0173	–0.168
Poverty percentage 2000	−0.0164	−0.150	−0.0155	−0.142
Poverty percentage change 1990–2000	−0.0111	−0.067	−0.0059	−0.035
Subprime percentage			0.0007	0.279
Vacant percentage 2000			0.0293	0.098
Vacant percentage change 1990–2000			−0.0213	−0.072
Mortgage payment over 30%			0.0103	0.088
Loan-to-value ratio > 100%			0.0152	0.099
R ^2	0.468		0.546
F	45.3		39.4
Note: Italicized coefficients are significant at the 0.05 level. Those in bold and italics are significant at the 0.01 level.

Figure 8 Minority percentage and foreclosure incidence, Summit County.