IDEAS home Printed from https://ideas.repec.org/a/bla/ijurrs/v33y2009i2p291-313.html
   My bibliography  Save this article

Redlining Revisited: Mortgage Lending Patterns in Sacramento 1930–2004

Author

Listed:
  • JESUS HERNANDEZ

Abstract

Despite decades of government reform, the American housing credit system continues to mirror long‐standing patterns of racial segregation and inequality. Consistent with this trend, the current housing crisis reveals an unusually high concentration of subprime mortgage activity and property foreclosures in non‐white residential settlements across the nation. Given the generally accepted premise of market neutrality, this case study of lending patterns in Sacramento, California, questions why US housing market exchanges continue to produce racially disparate outcomes and seeks to identify the ideological practices in which race is deployed, informs state and private economic action and shapes contemporary credit market practices. Résumé Malgré des décennies de réformes gouvernementales, le système de crédit immobilier américain reflète toujours les anciens schémas de ségrégation raciale et d’inégalité. Conforme à cette logique, la crise du logement actuelle révèle une concentration étonnamment élevée de prêts hypothécaires à risque (subprime) et de saisies immobilières dans les quartiers résidentiels non‐blancs du pays. Considérant l’hypothèse communément admise de la neutralité du marché, cette étude de cas sur les schémas de prêts à Sacramento (Californie) analyse les raisons pour lesquelles les transactions immobilières continuent à produire des résultats distinctifs au plan racial; elle identifie également les pratiques idéologiques dans lesquelles la race intervient, guide l’action économique de l’État et du secteur privé, et façonne les pratiques contemporaines sur le marché du crédit.

Suggested Citation

  • Jesus Hernandez, 2009. "Redlining Revisited: Mortgage Lending Patterns in Sacramento 1930–2004," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 291-313, June.
    • Handle: RePEc:bla:ijurrs:v:33:y:2009:i:2:p:291-313
    DOI: 10.1111/j.1468-2427.2009.00873.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-2427.2009.00873.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-2427.2009.00873.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kristopher Gerardi & Adam Hale Shapiro & Paul S. Willen, 2007. "Subprime outcomes: risky mortgages, homeownership experiences, and foreclosures," Working Papers 07-15, Federal Reserve Bank of Boston.
    2. Robert B. Avery & Kenneth P. Brevoort & Glenn B. Canner, 2006. "Higher-priced home lending and the 2005 HMDA data," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 92(Sep), pages 123-166, September.
    3. Elvin Wyly & Markus Moos & Daniel Hammel & Emanuel Kabahizi, 2009. "Cartographies of Race and Class: Mapping the Class‐Monopoly Rents of American Subprime Mortgage Capital," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 332-354, June.
    4. Elizabeth Renuart, 2004. "An overview of the predatory mortgage lending process," Housing Policy Debate, Taylor & Francis Journals, vol. 15(3), pages 467-502.
    5. Kevin Fox Gotham, 2009. "Creating Liquidity out of Spatial Fixity: The Secondary Circuit of Capital and the Subprime Mortgage Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 355-371, June.
    6. Kathe Newman, 2009. "Post‐Industrial Widgets: Capital Flows and the Production of the Urban," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 314-331, June.
    7. Souphala Chomsisengphet & Anthony Pennington-Cross, 2006. "The evolution of the subprime mortgage market," Review, Federal Reserve Bank of St. Louis, vol. 88(Jan), pages 31-56.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manuel B. Aalbers, 2009. "The Sociology and Geography of Mortgage Markets: Reflections on the Financial Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 281-290, June.
    2. Saskia Sassen, 2009. "Cities Today: A New Frontier for Major Developments," The ANNALS of the American Academy of Political and Social Science, , vol. 626(1), pages 53-71, November.
    3. Gary A. Dymski & Jesus Hernandez & Lisa Mohanty, 2011. "Race, Power, and the Subprime/Foreclosure Crisis: A Mesoanalysis," Economics Working Paper Archive wp_669, Levy Economics Institute.
    4. Lara J. Cushing & Shiwen Li & Benjamin B. Steiger & Joan A. Casey, 2023. "Historical red-lining is associated with fossil fuel power plant siting and present-day inequalities in air pollutant emissions," Nature Energy, Nature, vol. 8(1), pages 52-61, January.
    5. Fred Block, 2015. "A Neo-Polanyian Theory of Economic Crises," American Journal of Economics and Sociology, Wiley Blackwell, vol. 74(2), pages 361-378, March.
    6. Manuel B. Aalbers, 2009. "The Globalization and Europeanization of Mortgage Markets," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 389-410, June.
    7. Dongying Li & Galen D Newman & Bev Wilson & Yue Zhang & Robert D Brown, 2022. "Modeling the relationships between historical redlining, urban heat, and heat-related emergency department visits: An examination of 11 Texas cities," Environment and Planning B, , vol. 49(3), pages 933-952, March.
    8. Jonathan K. London & Bethany B. Cutts & Kirsten Schwarz & Li Schmidt & Mary L. Cadenasso, 2021. "Unearthing the entangled roots of urban agriculture," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(1), pages 205-220, February.
    9. Gary A. Dymski, 2009. "Afterword: Mortgage Markets and the Urban Problematic in the Global Transition," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 427-442, June.
    10. Saskia Sassen, 2009. "When Local Housing Becomes an Electronic Instrument: The Global Circulation of Mortgages — A Research Note," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 411-426, June.
    11. Alan Walks, 2014. "From Financialization to Sociospatial Polarization of the City? Evidence from Canada," Economic Geography, Clark University, vol. 90(1), pages 33-66, January.
    12. Scott Markley, 2024. "Federal ‘redlining’ maps: A critical reappraisal," Urban Studies, Urban Studies Journal Limited, vol. 61(2), pages 195-213, February.
    13. Raoul S. Liévanos, 2019. "Racialized Structural Vulnerability: Neighborhood Racial Composition, Concentrated Disadvantage, and Fine Particulate Matter in California," IJERPH, MDPI, vol. 16(17), pages 1-24, September.
    14. Scott N. Markley & Taylor J. Hafley & Coleman A. Allums & Steven R. Holloway & Hee Cheol Chung, 2020. "The Limits of Homeownership: Racial Capitalism, Black Wealth, and the Appreciation Gap in Atlanta," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 44(2), pages 310-328, March.
    15. Gary Dymski & Jesus Hernandez & Lisa Mohanty, 2013. "Race, Gender, Power, and the US Subprime Mortgage and Foreclosure Crisis: A Meso Analysis," Feminist Economics, Taylor & Francis Journals, vol. 19(3), pages 124-151, July.
    16. Thomas Wainwright, 2009. "Laying the Foundations for a Crisis: Mapping the Historico‐Geographical Construction of Residential Mortgage Backed Securitization in the UK," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 372-388, June.
    17. Sumei Zhang, 2019. "Rethinking U.S. enterprise zones: The role of research design in program evaluation," Local Economy, London South Bank University, vol. 34(6), pages 545-571, September.
    18. Siân Butcher, 2020. "Appropriating rent from greenfield affordable housing: developer practices in Johannesburg," Environment and Planning A, , vol. 52(2), pages 337-361, March.
    19. Lei Zhang & Tammy Leonard, 2021. "External validity of hedonic price estimates: Heterogeneity in the price discount associated with having Black and Hispanic neighbors," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 62-85, January.
    20. Joseph Gibbons, 2023. "Examining the long-term influence of New Deal era redlining on contemporary gentrification," Urban Studies, Urban Studies Journal Limited, vol. 60(14), pages 2816-2834, November.
    21. Elvin Wyly & Markus Moos & Daniel Hammel & Emanuel Kabahizi, 2009. "Cartographies of Race and Class: Mapping the Class‐Monopoly Rents of American Subprime Mortgage Capital," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 332-354, June.
    22. Krimmel, Jacob, 2018. "Persistence of Prejudice: Estimating the Long Term Effects of Redlining," SocArXiv jdmq9, Center for Open Science.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erica Pani & Nancy Holman, 2014. "A Fetish and Fiction of Finance: Unraveling the Subprime Crisis," Economic Geography, Taylor & Francis Journals, vol. 90(2), pages 213-235, April.
    2. Manuel B. Aalbers, 2009. "The Globalization and Europeanization of Mortgage Markets," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 389-410, June.
    3. Saskia Sassen, 2009. "When Local Housing Becomes an Electronic Instrument: The Global Circulation of Mortgages — A Research Note," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 411-426, June.
    4. Gary A. Dymski, 2009. "Afterword: Mortgage Markets and the Urban Problematic in the Global Transition," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 427-442, June.
    5. Alan Walks, 2014. "From Financialization to Sociospatial Polarization of the City? Evidence from Canada," Economic Geography, Clark University, vol. 90(1), pages 33-66, January.
    6. Manuel B. Aalbers, 2009. "The Sociology and Geography of Mortgage Markets: Reflections on the Financial Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 281-290, June.
    7. Alan Walks, 2014. "Canada's Housing Bubble Story: Mortgage Securitization, the State, and the Global Financial Crisis," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(1), pages 256-284, January.
    8. Jesús M. González-Pérez, 2022. "Evictions, Foreclosures, and Global Housing Speculation in Palma, Spain," Land, MDPI, vol. 11(2), pages 1-26, February.
    9. Gerardi Kristopher & Willen Paul, 2009. "Subprime Mortgages, Foreclosures, and Urban Neighborhoods," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(3), pages 1-37, March.
    10. Xudong An & Raphael W. Bostic, 2009. "Policy incentives and the extension of mortgage credit: Increasing market discipline for subprime lending," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(3), pages 340-365.
    11. Patrick Bajari & Chenghuan Sean Chu & Minjung Park, 2008. "An Empirical Model of Subprime Mortgage Default From 2000 to 2007," NBER Working Papers 14625, National Bureau of Economic Research, Inc.
    12. Dan Immergluck, 2011. "The Local Wreckage of Global Capital: The Subprime Crisis, Federal Policy and High‐Foreclosure Neighborhoods in the US," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 35(1), pages 130-146, January.
    13. Mengzhu Zhang & Si Qiao & Xiang Yan, 2021. "The secondary circuit of capital and the making of the suburban property boom in postcrisis Chinese cities," Environment and Planning A, , vol. 53(6), pages 1331-1355, September.
    14. Manuel B. Aalbers, 2017. "The Variegated Financialization of Housing," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 41(4), pages 542-554, July.
    15. Isil Erol, 2019. "New Geographies of Residential Capitalism: Financialization of the Turkish Housing Market Since the Early 2000s," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 43(4), pages 724-740, July.
    16. Callum Ward, 2021. "Contradictions of Financial Capital Switching: Reading the Corporate Leverage Crisis through The Port of Liverpool's Whole Business Securitization," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 45(2), pages 249-265, March.
    17. Janet L. Yellen, 2008. "The financial markets, housing, and the economy," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue apr18.
    18. Gwinner, William B. & Sanders, Anthony, 2008. "The sub prime crisis : implications for emerging markets," Policy Research Working Paper Series 4726, The World Bank.
    19. Foote, Christopher L. & Gerardi, Kristopher & Willen, Paul S., 2008. "Negative equity and foreclosure: Theory and evidence," Journal of Urban Economics, Elsevier, vol. 64(2), pages 234-245, September.
    20. Michael Spence & Patricia Clarke Annez & Robert M. Buckley, 2009. "Urbanization and Growth : Commission on Growth and Development," World Bank Publications - Books, The World Bank Group, number 2582, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ijurrs:v:33:y:2009:i:2:p:291-313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0309-1317 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.