Mortgage Lending in Homogenous Neighborhoods

A new study examines mortgage lending practices in racially homogenous neighborhoods for clues about how those neighborhoods differ from the aggregate, national market.

1 minute read

August 29, 2019, 1:00 PM PDT

By James Brasuell @CasualBrasuell


Gold Coast and Old Town

James Andrews1 / Shutterstock

A new study, available online, examines the racial contours of the U.S. subprime lending boom, foreclosure crisis, and recovery surrounding the Great Recession.

"Existing studies reveal general lending patterns in these periods but fail to scrutinize racially homogeneous neighborhoods where outcomes often diverge from aggregate trends," writes author Tyler Haupert, a graduate student at Columbia University, in the abstract to differentiate the study from previous research.

The study uses data from 2005 and 2015, and finds a commonality to the pre-recession market and the post-recession market: "the gap between white borrowers’ comparatively high application approval rates and minority borrowers’ lower approval rates grows as the proportion of white residents in a target neighborhood increases."

The big takeaway: the racially homogenous neighborhoods function differently than the aggregated experience of the housing market.

The study is available in its entirety online, published by the Housing Policy Debate journal.

Thursday, August 29, 2019 in Housing Policy Debate

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

4 hours ago - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

5 hours ago - Shelterforce Magazine

Aerial of rainbow painted crosswalks at large intersection in Castro District, Sna Francisco, California.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts

Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.

6 hours ago - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA