EconPapers    
Economics at your fingertips  
 

Mortgage Lenders and the Geographic Concentration of Foreclosures

Stephen L. Ross () and Yuan Wang ()
Additional contact information
Stephen L. Ross: University of Connecticut
Yuan Wang: FreddieMac

No 2022-001, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: We use HMDA rate spread loans to identify lenders involved in riskier lending prior to the foreclosure crisis. We develop a shift-share measure of changes in high rate spread share lender representation in housing submarkets across origination years. While half the cross-sectional correlation between foreclosure and high rate spread lender share is explained by borrower observables, we find robust and stable estimates of the within housing submarket relationship between foreclosure and predicted changes in market share. Estimates are not explained by local housing price variation, rather evidence suggests servicer behavior in response to rising local foreclosure rates as a mechanism.

Keywords: rate spread loans; subprime lending; local housing markets; home purchase mortgages; house price declines; loan servicers (search for similar items in EconPapers)
JEL-codes: D14 G01 G21 R21 R23 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-ban and nep-ure
Note: MIP
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://humcap.uchicago.edu/RePEc/hka/wpaper/Ross_W ... hic-foreclosures.pdf Firsts version, January 2022 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hka:wpaper:2022-001

Access Statistics for this paper

More papers in Working Papers from Human Capital and Economic Opportunity Working Group Contact information at EDIRC.
Bibliographic data for series maintained by Jennifer Pachon ().

 
Page updated 2023-02-02
Handle: RePEc:hka:wpaper:2022-001