Have community banks reduced home foreclosure rates?

Kathy Fogel, Raja Kali and Tim Yeager

Journal of Banking & Finance, 2011, vol. 35, issue 9, 2498-2509

Abstract: Compared with mortgage brokers and universal banks, community banks have stronger incentives to originate high-quality residential home loans. Using the RealtyTrac database on residential foreclosures between 2005 and 2008, we show that county-level foreclosure rates are lower in counties with greater community bank presence. This finding is robust to a host of county-level economic and demographic control variables and after controlling for possible endogeneity of community bank presence.

Keywords: Subprime; mortgage; loans; Community; banks; Foreclosures; Relationship; lending; Mortgage; brokers (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:35:y:2011:i:9:p:2498-2509

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