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Have community banks reduced home foreclosure rates?

  • Fogel, Kathy
  • Kali, Raja
  • Yeager, Tim
Registered author(s):

    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.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0378426611000811
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    Article provided by Elsevier in its journal Journal of Banking & Finance.

    Volume (Year): 35 (2011)
    Issue (Month): 9 (September)
    Pages: 2498-2509

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    Handle: RePEc:eee:jbfina:v:35:y:2011:i:9:p:2498-2509
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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