Regulation of Subprime Mortgage Products: An Analysis of North Carolina's Predatory Lending Law
AbstractThis paper estimates the effect of North Carolina's high-cost mortgage law on the subprime mortgage market in that state. The results indicate that creditors sharply restricted lending to higher risk consumers in North Carolina following passage of the law. Creditors did not restrict lending in neighboring states or to lower risk consumers in North Carolina. These results suggest that the restriction in North Carolina was due to rationing in response to higher costs imposed by the law. The findings of this study are of importance beyond North Carolina. Other states and municipalities have proposed or passed similar or more restrictive laws. These laws risk taking back some of the gains in credit availability that lower income and higher risk consumers gained in the 1990s.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal The Journal of Real Estate Finance and Economics.
Volume (Year): 29 (2004)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102945
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Anthony Pennington-Cross & Giang Ho, 2008.
"Predatory Lending Laws and the Cost of Credit,"
Real Estate Economics,
American Real Estate and Urban Economics Association, vol. 36(2), pages 175-211, 06.
- W. Scott Frame & Lawrence J. White, 2009.
"Technological Change, Financial Innovation, and Diffusion in Banking,"
09-03, New York University, Leonard N. Stern School of Business, Department of Economics.
- W. Scott Frame & Lawrence J. White, 2009. "Technological change, financial innovation, and diffusion in banking," Working Paper 2009-10, Federal Reserve Bank of Atlanta.
- Christian Weller, 2009.
"Credit Access, the Costs of Credit and Credit Market Discrimination,"
The Review of Black Political Economy,
Springer, vol. 36(1), pages 7-28, March.
- Christian E. Weller, 2008. "Credit Access, the Costs of Credit and Credit Market Discrimination," Working Papers wp171, Political Economy Research Institute, University of Massachusetts at Amherst.
- Giang Ho & Anthony Pennington-Cross, 2005. "The impact of local predatory lending laws," Working Papers 2005-049, Federal Reserve Bank of St. Louis.
- Giang Ho & Anthony Pennington-Cross, 2007. "The varying effects of predatory lending laws on high-cost mortgage applications," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 39-60.
- Giang Ho & Anthony Pennington-Cross, 2006.
"The impact of local predatory lending laws on the flow of subprime credit,"
2006-009, Federal Reserve Bank of St. Louis.
- Ho, Giang & Pennington-Cross, Anthony, 2006. "The impact of local predatory lending laws on the flow of subprime credit," Journal of Urban Economics, Elsevier, vol. 60(2), pages 210-228, September.
- Bond, Philip & Musto, David K. & Yilmaz, Bilge, 2009. "Predatory mortgage lending," Journal of Financial Economics, Elsevier, vol. 94(3), pages 412-427, December.
- Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
- Philip Bond & David K. Musto & Bilge Yilmaz, 2008. "Predatory mortgage lending," Working Papers 08-24, Federal Reserve Bank of Philadelphia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.