Applying for home mortgages in immigrant communities: the case of Asian applicants in Los Angeles
In this paper it is argued that the spatial segmentation of financial services in urban areas, generated by a combination of financial market characteristics, transnational movements of people and capital, cultural practices, ethnic resources, and social networks may produce, at the early stages of the home mortgage application process, a sorting of Asian borrowers into mortgage channels that may differ from those of other minority groups and may have, in the long run, a different impact on the exposure and vulnerability of borrowers to adverse lending practices and products. The study employs multinomial logistic regression and GIS analysis of annual Home Mortgage Disclosure Data and explores trends in home mortgage loan applications to different types of lenders by Asian, white, and other minority prospective borrowers in the Los Angeles Metropolitan Area. Findings indicate that Asian applicants feature a greater propensity to apply for mortgage loans at very large mainstream banks and Asian-owned banks than at subprime lenders compared with other minority prospective borrowers. The larger presence of competing financial institutions in Asian immigrant markets may result in a greater access by Asian prospective borrowers to more options and, possibly, to higher quality and affordable mortgage products than other pools of minority applicants. At the same time, some of the social and cultural resources typically found in ethnic enclaves may affect how Asian applicants react to the outreach practices, sorting procedures, and products offered by different lenders. Keywords:� home mortgage lending, immigrants, ethnic banks, Asians
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:44:y:2012:i:1:p:89-110. 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.