IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v35y1998i11p1971-1993.html
   My bibliography  Save this article

Mortgage Lending and Residential Integration in a Hypersegregated MSA: The Case of St Louis

Author

Listed:
  • Heather I. MacDonald

    (Graduate Program in Urban and Regional Planning, 347 Jessup Hall, University of Iowa, Iowa City, IA 52242, USA, heather-macdonald@uiowa.edu)

Abstract

Have mortgage lending reforms during the first half of the 1990s been associated with improvements in the home-ownership prospects of black residents? Have the spatial patterns of loan applications changed, to increase lending activity in lower-income tracts and to advance residential integration? This paper investigates changes in mortgage lending activity in the St Louis metropolitan area over the period 1990-94. Analysis of Home Mortgage Disclosure Act (HMDA) data suggests that the home-ownership prospects of black St Louis residents improved over that period, as a result of increases in loan application rates from blacks during the latter half of the period, and of steady improvements in loan approval rates for black applicants. Some increases were seen in the proportion of applications attracted to lower-income tracts. Black loan applicants became more likely to apply for a loan in a predominantly white tract. A detailed spatial analysis of loan application patterns suggests that trends towards greater residential integration have accompanied recent mortgage market reforms.

Suggested Citation

  • Heather I. MacDonald, 1998. "Mortgage Lending and Residential Integration in a Hypersegregated MSA: The Case of St Louis," Urban Studies, Urban Studies Journal Limited, vol. 35(11), pages 1971-1993, November.
  • Handle: RePEc:sae:urbstu:v:35:y:1998:i:11:p:1971-1993
    DOI: 10.1080/0042098983971
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098983971
    Download Restriction: no

    File URL: https://libkey.io/10.1080/0042098983971?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. Douglas Massey & Nancy Denton, 1989. "Hypersegregation in U.S. Metropolitan Areas: Black and Hispanic Segregation Along Five Dimensions," Demography, Springer;Population Association of America (PAA), vol. 26(3), pages 373-391, August.
    2. Susan J. Popkin & James E. Rosenbaum & Patricia M. Meaden, 1993. "Labor market experiences of low-income black women in middle-class suburbs: Evidence from a survey of gautreaux program participants," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(3), pages 556-573.
    3. Griffith L. Garwood & Dolores S. Smith, 1993. "The Community Reinvestment Act: evolution and current issues," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Apr, pages 251-267.
    4. Glenn B. Canner & Wayne Passmore, 1995. "Home purchase lending in low-income neighborhoods and to low-income borrowers," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Feb, pages 71-103.
    5. Ihlanfeldt, Keith R. & Sjoquist, David L., 1989. "The impact of job decentralization on the economic welfare of central city blacks," Journal of Urban Economics, Elsevier, vol. 26(1), pages 110-130, July.
    6. W. Clark, 1991. "Residential preferences and neighborhood racial segregation: A test of the schelling segregation model," Demography, Springer;Population Association of America (PAA), vol. 28(1), pages 1-19, February.
    7. John C. Weicher, 1994. "The new structure of the housing finance system," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 47-65.
    8. Glenn B. Canner & Monisha Mittal & Wayne Passmore, 1994. "Private mortgage insurance," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Oct, pages 883-899.
    9. Weicher, John C, 1992. "FHA Reform: Balancing Public Purpose and Financial Soundness," The Journal of Real Estate Finance and Economics, Springer, vol. 5(2), pages 133-150, June.
    Full references (including those not matched with items on IDEAS)

    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. Onder, Zeynep, 1998. "Individual and Neighborhood Effects on FHA Mortgage Activity: Evidence from HMDA Data," Journal of Housing Economics, Elsevier, vol. 7(4), pages 343-376, December.
    2. Itzhak Omer, 2005. "How Ethnicity Influences Residential Distributions: An Agent-Based Simulation," Environment and Planning B, , vol. 32(5), pages 657-672, October.
    3. repec:pri:cepsud:107kling is not listed on IDEAS
    4. Mark E. Votruba & Jeffrey R. Kling, 2004. "Effects of Neighborhood Characteristics on the Mortality of Black Male Youth: Evidence From Gautreaux," Working Papers 870, Princeton University, Department of Economics, Industrial Relations Section..
    5. Bharathi, Naveen & Malghan, Deepak & Mishra, Sumit & Rahman, Andaleeb, 2021. "Fractal urbanism: City size and residential segregation in India," World Development, Elsevier, vol. 141(C).
    6. Kaihuai Liao & Peiyi Lv & Shixiang Wei & Tianlan Fu, 2022. "A Scientometric Review of Residential Segregation Research: A CiteSpace-Based Visualization," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    7. Nothaft, Frank E. & Perry, Vanessa G., 2002. "Do mortgage rates vary by neighborhood? Implications for loan pricing and redlining," Journal of Housing Economics, Elsevier, vol. 11(3), pages 244-265, September.
    8. Mark E. Votruba & Jeffrey R. Kling, 2005. "Effects of Neighborhood Characteristics on the Mortality of Black Male Youth: Evidence From Gautreaux," Working Papers 95, Princeton University, Department of Economics, Center for Economic Policy Studies..
    9. Jeffrey R. Kling & Mark E. Votruba, 2004. "Effects of Neighborhood Characteristics on the Mortality of Black Male Youth: Evidence From Gautreaux," Working Papers 870, Princeton University, Department of Economics, Industrial Relations Section..
    10. Douglas Evanoff & Lewis Segal, 1997. "Strategic Responses to Bank Regulation: Evidence From HMDA Data," Journal of Financial Services Research, Springer;Western Finance Association, vol. 11(1), pages 69-93, February.
    11. Brigitte S. Waldorf, 1993. "Segregation in Urban Space: A New Measurement Approach," Urban Studies, Urban Studies Journal Limited, vol. 30(7), pages 1151-1164, August.
    12. Glenn B. Canner & Elizabeth Laderman & Andreas Lehnert & Wayne Passmore, 2002. "Does the Community Reinvestment Act (CRA) cause banks to provide a subsidy to some mortgage borrowers?," Finance and Economics Discussion Series 2002-19, Board of Governors of the Federal Reserve System (U.S.).
    13. Gandica, Yerali & Gargiulo, Floriana & Carletti, Timoteo, 2016. "Can topology reshape segregation patterns?," Chaos, Solitons & Fractals, Elsevier, vol. 90(C), pages 46-54.
    14. Sjoquist, David L., 2001. "Spatial Mismatch and Social Acceptability," Journal of Urban Economics, Elsevier, vol. 50(3), pages 474-490, November.
    15. Ron Johnston & James Forrest & Michael Poulsen, 2002. "Are there Ethnic Enclaves/Ghettos in English Cities?," Urban Studies, Urban Studies Journal Limited, vol. 39(4), pages 591-618, April.
    16. Ghazi Falah, 1996. "Living Together Apart: Residential Segregation in Mixed Arab-Jewish Cities in Israel," Urban Studies, Urban Studies Journal Limited, vol. 33(6), pages 823-857, June.
    17. Liping Wang & Cifang Wu & Songnian Zhao, 2022. "A Review of Spatial Mismatch Research: Empirical Debate, Theoretical Evolution and Connotation Expansion," Land, MDPI, vol. 11(7), pages 1-16, July.
    18. Lahr, Michael L. & Gibbs, Robert M., 2002. "Mobility of Section 8 families in Alameda County," Journal of Housing Economics, Elsevier, vol. 11(3), pages 187-213, September.
    19. Chang, Virginia W., 2006. "Racial residential segregation and weight status among US adults," Social Science & Medicine, Elsevier, vol. 63(5), pages 1289-1303, September.
    20. Tse-Chuan Yang & Stephen A Matthews, 2015. "Death by Segregation: Does the Dimension of Racial Segregation Matter?," PLOS ONE, Public Library of Science, vol. 10(9), pages 1-26, September.
    21. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics, revised Jan 2009.

    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:sae:urbstu:v:35:y:1998:i:11:p:1971-1993. 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.