Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/120134
Authors: 
Hernandez, Ruben
Owyang, Michael
Ghent, Andra
Year of Publication: 
2011
Series/Report no.: 
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
Abstract: 
In this paper 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 presence of disparate impact and disparate treatment from race and ethnicity on rate-setting behavior across the most popular subprime mortgage products. In contrast with previous studies of the subprime market, we find evidence of adverse pricing effects for black and Hispanic borrowers.
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.