1,585
Views
63
CrossRef citations to date
0
Altmetric
Commentary

Metropolitan Segregation and the Subprime Lending Crisis

, , &
Pages 177-198 | Received 11 Oct 2011, Accepted 12 Apr 2012, Published online: 21 Dec 2012

References

  • Aalbers , M. B. 2009 . The sociology and geography of mortgage markets: Reflections on the financial crisis . International Journal of Urban and Regional Research , 33 : 281 – 290 .
  • Aalbers , M. B. 2011 . Place, exclusion, and mortgage markets , West Sussex , , UK : Wiley-Blackwell .
  • Acevedo-Garcia , D. , Lochner , K. A. , Osypuk , T. L. and Subramanian , S. V. 2003 . Future directions in residential segregation and health research: A multilevel approach . American Journal of Public Health , 93 : 215 – 221 .
  • Avery , R. B. , Brevoort , K. P. and Canner , G. B. 2006 . High-priced home lending and the 2005 HMDA data . Federal Reserve Bulletin , 8 : 123 – 166 .
  • Avery , R. B. , Brevoort , K. P. and Canner , G. B. 2007 . The 2006 HMDA data . Federal Reserve Bulletin , 93 : 73 – 109 .
  • Baily , M. N. , Elmendorf , D. W. and Litan , R. E. 2008 . The great credit squeeze: How it happened, how to prevent another , Washington , DC : The Brookings Institution .
  • Been , V. , Ellen , I. and Madar , J. 2009 . The high-cost of segregation: Exploring racial disparities in high-cost lending . Fordham Urban Law Journal , 36 : 361 – 384 .
  • Bocian , D. G. , Ernst , K. S. and Li , W. 2008 . Race, ethnicity and subprime home loan pricing . Journal of Economics and Business , 60 : 110 – 124 .
  • Bocian , D. G. , Li , W. and Ernst , K. S. 2010 . Foreclosures by race and ethnicity: The demographics of a crisis , Washington , DC : Center for Responsible Lending .
  • Bond , C. and Williams , R. 2007 . Residential segregation and the transformation of home mortgage lending . Social Forces , 86 : 671 – 698 .
  • Bostic , R. W. , Engel , K. C. , McCoy , P. A. , Pennington-Cross , A. and Wachter , S. M. 2008 . State and local anti-predatory lending laws: The effect of legal enforcement mechanisms . Journal of Economics and Business , 60 : 47 – 66 .
  • Brooks , R. and Simon , R. 2007, December 3 . Subprime debacle traps even very credit-worthy: As housing boomed, industry pushed loans to a broader market . Wall Street Journal , : p. A1
  • Bunce , H. L. , Gruenstein , D. , Herbert , C. E. and Scheessele , R. M. 2001 . Subprime foreclosures: The smoking gun of predatory lending? , Washington , DC : U.S. Department of Housing and Urban Development .
  • Calem , P. S. , Hershaff , J. E. and Wachter , S. M. 2004 . Neighborhood patterns of subprime lending: Evidence from disparate cities . Housing Policy Debate , 15 : 603 – 622 .
  • Carr , J. H. and Kutty , N. K. 2008 . Segregation: The rising costs for America , New York, NY : Routledge .
  • Carruthers , J. I. and Ulfarsson , G. F. 2002 . Fragmentation and sprawl: Evidence from interregional analysis . Growth and Change , 33 : 312 – 340 .
  • Cashin , S. 2004 . The failures of integration , New York, NY : PublicAffairs .
  • Chomsisengphet , S. and Pennington-Cross , A. 2006 . The evolution of the subprime mortgage market . Federal Reserve Bank of St. Louis Review , 88 : 31 – 56 .
  • Coulton , C. , Chan , T. , Schramm , M. and Mikelbank , K. 2008 . Pathways to foreclosure: A longitudinal study of mortgage loans, Cleveland and Cuyahoga County, 2005–2008 , Cleveland , OH : Center on Urban Poverty and Community Development .
  • Courchane , M. J. 2007 . The pricing of home mortgage loans to minority borrowers: How much of the APR differential can we explain? . Journal of Real Estate Research , 29 : 399 – 439 .
  • Cunningham , M. K. and Sawyer , N. 2005 . Moving to better neighborhoods with mobility counseling , Washington , DC : The Urban Institute .
  • Cutler , D. M. and Glaeser , E. L. 1997 . Are ghettos good or bad? . Quarterly Journal of Economics , 112 : 827 – 872 .
  • Dawkins , C. 2005 . Tiebout choice and residential segregation by race in U.S. metropolitan areas, 1980–2000 . Regional Science and Urban Economics , 35 : 734 – 755 .
  • Edelberg , W. Racial dispersion in consumer credit interest rates . Paper presented at the Federal Reserve System Community Affairs Research Conference .
  • Engel , K. C. and McCoy , P. A. 2002 . The CRA implications of predatory lending . Fordham Urban Law Journal , 29 : 1571 – 1606 .
  • Engel , K. C. and McCoy , P. A. 2008 . “ From credit denial to predatory lending: The challenge of sustaining minority homeownership ” . In Segregation: The rising costs for America , Edited by: Carr , J. H. and Kutty , N. K. 81 – 123 . New York, NY : Routledge .
  • Engel , K. C. and McCoy , P. A. 2011 . The subprime virus: Reckless credit, regulatory failure, and next steps , New York, NY : Oxford University Press .
  • Ergungor , O. E. 2007 . Bank branch presence and access to credit in low-to-moderate income neighborhoods Retrieved from http://ssrn.com/abstract=951197
  • Fellowes , M. 2006 . Credit scores, reports, and getting ahead in America , Washington , DC : The Brookings Institution .
  • Fischer , C. S. , Stockmayer , G. , Stiles , J. and Hout , M. 2004 . Distinguishing the geographic levels and social dimensions of U.S. metropolitan segregation, 1960–2000 . Demography , 41 : 37 – 59 .
  • Fisher , L. E. 2010 . Target marketing of subprime loans: Racialized consumer fraud and reverse redlining Retrieved from http://ssrn.com/abstract=1546098
  • French , G. 2009 . A year in bank supervision: 2008 and a few of its lessons . Supervisory Insights , 6 : 3 – 18 .
  • Getter , D. E. 2006 . Consumer credit risk and pricing . The Journal of Consumer Affairs , 40 : 41 – 63 .
  • Goetz , E. 2003 . Clearing the way: Deconcentrating the poor in urban America , Washington , DC : The Urban Institute Press .
  • Goetz , E. 2011 . Gentrification in black and white: The racial impact of public housing demolition in American cities . Urban Studies , 48 : 1581 – 1604 .
  • Gramlich , E. M. 2007 . Subprime mortgages: America's latest boom and bust , Washington , DC : The Urban Institute Press .
  • Holloway , S. R. 1998 . Exploring the neighborhood contingency of race discrimination in mortgage lending in Columbus, Ohio . Annals of the Association of American Geographers , 88 : 252 – 276 .
  • Howell , B. 2006 . Exploiting race and space: Concentrated subprime lending as housing discrimination . California Law Review , 94 : 101 – 147 .
  • Hyra , D. S. 2008 . The new urban renewal: The economic transformation of Harlem and Bronzeville , Chicago, IL : The University of Chicago Press .
  • Immergluck , D. 2010 . Neighborhoods in the wake of the debacle: Intrametropolitan patterns of foreclosed properties . Urban Affairs Review , 46 : 3 – 36 .
  • Immergluck , D. and Smith , G. 2005 . Measuring the effects of subprime lending on neighborhood foreclosures: Evidence from Chicago . Urban Affairs Review , 40 : 362 – 389 .
  • Immergluck , D. and Smith , G. 2006 . The external costs of foreclosure: The impact of single-family mortgage foreclosures on property values . Housing Policy Debate , 17 : 57 – 79 .
  • Jackson , K. T. 1985 . Crabgrass frontier: The suburbanization of the United States , New York, NY : Oxford University Press .
  • Joint Economic Committee . 2007 . The subprime lending crisis: The economic impact on wealth, property values and tax revenues, and how we got here , Washington , DC : Joint Economic Committee, U.S. Congress .
  • Kingsley , G. T. , Johnson , J. and Pettit , K. L. 2003 . Patterns of Section 8 relocation in the HOPE VI program . Journal of Urban Affairs , 25 : 427 – 447 .
  • Kingsley , G. T. and Pettit , K. L. 2009 . High-cost and investor mortgages: Neighborhood patterns , Washington , DC : The Urban Institute .
  • Kirk , D. S. and Hyra , D. S. 2011 . Home foreclosures and community crime: Causal or spurious association? Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1697871
  • Kobie , T. F. and Lee , S. 2011 . The spatial-temporal impact of residential foreclosures on single-family residential property values . Urban Affairs Review , 47 : 3 – 30 .
  • Lanzerotti , L. Homeownership at high-cost: Foreclosure risk and high-cost loans in California . (Working Paper 2006-01) . San Francisco , CA : Federal Reserve Bank of San Francisco .
  • Lin , Z. , Rosenblatt , E. and Yao , V. W. 2009 . Spillover effects of foreclosures on neighborhood property values . Journal of Real Estate Finance and Economics , 38 : 387 – 407 .
  • Logan , J. R. , Stults , B. J. and Farley , R. 2004 . Segregation of minorities in the metropolis: Two decades of change . Demography , 41 : 1 – 22 .
  • Massey , D. S. and Denton , N. A. 1988 . The dimensions of residential segregation . Social Forces , 67 : 281 – 315 .
  • Massey , D. S. and Denton , N. A. 1993 . American apartheid: Segregation and the making of the underclass , Cambridge , MA : Harvard University Press .
  • Massey , D. S. and Kanaiaupuni , S. M. 1993 . Public housing and the concentration of poverty . Social Science Quarterly , 74 : 109 – 122 .
  • Morris , C. R. 2008 . The trillion dollar meltdown: Easy money, high rollers, and the great credit crash , New York, NY : Perseus Brooks .
  • Munnell , A. H. , Tootell , G. M. , Browne , L. E. and McEneaney , J. 1996 . Mortgage lending in Boston: Interpreting HMDA data . The American Economic Review , 86 : 25 – 53 .
  • National Community Reinvestment Coalition . 2005 . Fair lending disparities by race, income and gender in all metropolitan areas in America , Washington , DC : National Community Reinvestment Coalition .
  • Nelson , A. C. , Sanchez , T. W. and Dawkins , C. J. 2004 . The effect of urban containment and mandatory housing elements on racial segregation in U.S. metropolitan areas, 1990–2000 . Journal of Urban Affairs , 26 : 339 – 350 .
  • Pendall , R. 2000a . Local land-use regulation and the chain of exclusion . Journal of the American Planning Association , 66 : 125 – 142 .
  • Pendall , R. 2000b . Why voucher and certificate users live in distressed neighborhoods . Housing Policy Debate , 11 : 881 – 910 .
  • Pennington-Cross , A. and Ho , G. The termination of subprime hybrid and fixed-rate mortgages . (Working Paper 2006-042A) . St. Louis , MO : Federal Reserve Bank of St. Louis .
  • Quercia , R. G. , Stegman , M. A. and Davis , W. R. 2007 . The impact of predatory loan terms on subprime foreclosures: The special case of prepayment penalties and balloon payments . Housing Policy Debate , 18 : 311 – 346 .
  • Reid , C. and Laderman , E. The untold costs of subprime lending: Examining the links among higher-priced lending, foreclosures and race in California . Paper presented at the Institute for Assets and Social Policy, Brandeis University .
  • Relman , J. P. 2008 . Foreclosures, integration, and the future of the Fair Housing Act . Indiana Law Review , 41 : 629 – 652 .
  • Rothwell , J. and Massey , D. S. 2009 . The effect of density zoning on racial segregation in U.S. urban areas . Urban Affairs Review , 44 : 779 – 806 .
  • Rugh , J. S. and Massey , D. S. 2010 . Racial segregation and the American foreclosure crisis . American Sociological Review , 75 : 629 – 651 .
  • Sassen , S. 2009 . When local housing becomes an electronic instrument: The global circulation of mortgages—a research note . International Journal of Urban and Regional Research , 33 : 411 – 426 .
  • Schloemer , E. , Li , W. , Ernst , K. and Keest , K. 2006 . Losing ground: Foreclosure in the subprime market and their cost to homeowners , Durham , NC : Center for Responsible Lending .
  • Smith , B. C. 2007 . The subprime mortgage market: A review and compilation of research and commentary (prepared for the Homer Hoyt Institute) Retrieved from http://www.hoyt.org/subprime/subprime_review_no_exec_summary.pdf
  • Smith , S. and Cloud , C. 1997 . “ Documenting discrimination by homeowners insurance companies through testing ” . In Insurance redlining: Disinvestment, reinvestment, and the evolving role of financial institutions , Edited by: Squires , G. D. 97 – 117 . Washington , DC : The Urban Institute Press .
  • Squires , G. D. 2008a . A fair housing agenda for 2008 and beyond . Shelterforce , 30 : 18 – 19 .
  • Squires , G. D. Do subprime loans create subprime cities? Surging inequality and the rise of predatory lending . (Briefing Paper No. 197) . Washington , DC : Economic Policy Institute .
  • Squires , G. D. and Chadwick , J. 2006 . Linguistic profiling: A tradition of the property insurance industry . Urban Affairs Review , 41 : 400 – 415 .
  • Squires , G. D. and Hyra , D. S. 2010 . Foreclosures—yesterday, today, and tomorrow . City and Community , 9 : 50 – 60 .
  • Stuart , G. 2003 . Discriminating risk: The U.S. mortgage lending industry in the twentieth century , Ithaca , NY : Cornell University Press .
  • Subramanian , S. V. and Kawachi , I. 2004 . Income inequality and health: What have we learned so far? . Epidemiologic Review , 26 : 78 – 91 .
  • Tiebout , C. 1956 . A pure theory of local expenditures . Journal of Political Economy , 64 : 416 – 424 .
  • Timberlake , J. M. and Iceland , J. 2007 . Change in racial and ethnic residential inequality in American cities, 1970–2000 . City and Community , 6 : 335 – 365 .
  • Turner , M. T. and Briggs , X. 2008 . Assisted housing mobility and the success of low-income minority families: Lessons for policy practice and future research , Washington , DC : The Urban Institute .
  • Turner , M. T. , Freiberg , F. , Godfrey , E. , Herbig , C. , Levy , D. and Smith , R. 2002 . All other things being equal: A paired testing study of mortgage lending institutions , Washington , DC : The Urban Institute .
  • Turner , M. T. and Skidmore , F. 1999 . Mortgage lending discrimination: A review of existing evidence , Washington , DC : The Urban Institute .
  • U.S. Bureau of Labor Statistics . 2010 . Unemployment rate: Historical data , Washington , DC : Author .
  • U.S. Conference of Mayors . 2007 . U.S. metro economies: The mortgage crisis , Washington , DC : Author .
  • Weicher , J. C. 2007 . The long and short of housing: The home ownership boom and the subprime foreclosure bust Networks Financial Institute Policy Brief No. 2007-PB-09). Retrieved from http://ssrn.com/abstract=1066785
  • White , A. W. 2004 . Risk-based mortgage pricing: Present and future research . Housing Policy Debate , 15 : 503 – 531 .
  • Wilkes , R. and Iceland , J. 2004 . Hypersegregation in the twenty-first century . Demography , 41 : 23 – 36 .
  • Wilkinson , R. G. 1996 . Unhealthy societies: The afflictions of inequality , New York, NY : Routledge .
  • Williams , D. R. and Collins , C. 2001 . Racial residential segregation: A fundamental cause of racial disparities in health . Public Health Reports , 116 : 404 – 416 .
  • Wyly , E. , Moos , M. , Hammel , D. and Kabahizi , E. 2009 . Cartographies of race and class: Mapping the class-monopoly rents of American subprime mortgage capital . International Journal of Urban and Regional Research , 33 : 332 – 354 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.