Spatial patterns of subprime mortgages by local banks, nonlocal banks, and independents in the continental US
Mortgage innovations and New Deal agencies facilitated lower priced loans for prime borrowers and minimum price disparities across US regions. In the 1980s deregulation removed price restrictions on banks’ mortgages and also removed geographic distance restrictions on lending, opening the subprime industry. Global and local Moran indices identified interregional price disparities based upon proportions of subprime mortgage originations. A cluster of high-priced mortgage originations was found along the Gulf States both before and after the subprime collapse of 2007. Local banks, perceived to have special underwriting knowledge about their markets, and who were more likely to offer preferred prices, were compared with nonlocal banks and independent mortgage companies on their spatial distributions of mortgage pricing. During the boom and bust years from 2005 to 2008, the regional patterns of proportions of subprime mortgages for each mortgage institution type were similar, adversely impacting borrowers in the Southern Gulf region. These spatial patterns suggest that nonlocal banks and independents made the same underwriting conclusions about borrowers in regional markets as the local bank specialists.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:pio:envira:v:43:y:2011:i:8:p:1761-1778. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.