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

stack of books

Planetizen’s Top Planning Books of 2023

The world is changing, and planning with it.

November 24, 2023 - Planetizen Team

Close-up of 'Red Line Subway Entry' sign with Braille below and train logo above text in Chicago, Illinois.

Chicago Red Line Extension Could Transform the South Side

The city’s transit agency is undertaking its biggest expansion ever to finally bring rail to the South Side.

November 24, 2023 - The Architect's Newspaper

Diagram of visibility at urban intersection.

How ‘Daylighting’ Intersections Can Save Lives

Eliminating visual obstructions can make intersections safer for all users.

November 27, 2023 - Strong Towns

Bus passengers boarding an orange Los Angeles Metro bus on Sunset Boulevard.

LA Pledges to Add Thousands of New Bus Stop Shelters

The city’s bus riders will finally get some relief from sun and rain.

7 hours ago - Urbanize Los Angeles

Green Paris Texas city limit sign with population.

How Paris, Texas Became a ‘Unicorn’ for Rural Transit

A robust coalition of advocates in the town of 25,000 brought together the funding and resources to launch a popular bus service that some residents see as a mobility lifeline—and a social club.

November 30 - Texas Monthly

Red San Diego Trolley light rail train at station with passengers walking on platform and Spanish-style dome building in background.

San Diego Trolley Nation’s Most Popular Light Rail

The system's ridership benefited from an extension project and free transit for youth.

November 30 - Axios

News from HUD User

HUD's Office of Policy Development and Research

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

"Rethinking Commuter Rail" podcast & Intercity Bus E-News

Chaddick Institute at DePaul University

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.