Lending in the Modern Era: Does Racial Composition of Neighborhoods Matter When Individuals Seek Home Financing? A Pilot Study in New England

City and Community

Volumn 11, Issue 1, 2012, Pages 31-50

  Kuebler, Meghan ^a  

^a STATE UNIVERSITY OF NEW YORK   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84858854803     PISSN: 15356841     EISSN: 15406040     Source Type: Journal    
DOI: 10.1111/j.1540-6040.2011.01391.x     Document Type: Article

References (97)

1. Adelman, Robert M. 2004. "Neighborhood Opportunities, Race, and Class: The Black Middle Class and Residential Segregation. City & Community 3(1):43-63.
2. Alba, Richard, John Logan, and Brian Stults 2000. "The Changing Neighborhood Contexts of the Immigrant Metropolis. Social Forces 79:587-621.
3. Anong, Sophia T., Sharon A. DeVaney, and Yuan Yang 2007. "Asset Ownership by Black and White Families. Financial Counseling and Planning 18(1):33-45.
4. Avery, Robert B., and Thomas M. Bunyak. 1981. "Mortgage Redlining: Some New Evidence. Economic Review, Federal Reserve Bank of Cleveland, Summer:18-32.
5. Been, Vicki, Ingrid G. Ellen, and Josiah R. Madar 2009. "The High Cost of Segregation: Exploring Racial Disparities in High Cost Lending. Fordham Urban Law Journal 36(3): 361--93.
6. Berkey, D., F. Hoaglin, F. Mosteller, and G. A. Colditz 1995. "A Random Effects Regression Model for Meta-Analysis. Statisticsin Medicine 14:395-411.
7. Berkovec, James A., Glenn B. Canner, Stuart A. Gabriel, and Timothy H. Hannan 1994. "Race, Redlining, and Residential Mortgage Loan Performance. Journal of Real Estate Finance and Economics 9(3):263-94.
8. Bianchi, Suzanne. M., Reynolds Farley, and Daphne Spain 1982. "Racial Inequality in Housing: An Examination of Recent Trends. Demography 19(1):37-51.
9. Bocian, D. G., K. S. Ernst, and W. Li 2008. "Race, Ethnicity and Subprime Home Loan Pricing, " Journal of Economics and Business 60:110-24.
10. Calem, Paul S., Kevin Gillen, and Susan M. Wachter 2004. "The Neighborhood Distribution of Subprime Lending. Journal of Real Estate Finance and Economics 29(4):393-410.
11. Calem, Paul S., Jonathan E. Hershaff, and Susan M. Wachter 2004. "Neighborhood Patterns of Subprime Lending: Evidence from Disparate Cities. Housing Policy Debate 15(3):603-22.
12. Carr, J. H., and N. K. Kutty 2008. Segregation: The Rising Costs for America. New York: Routledge.
13. Chan, Sewan, Michael Gedal, Vickie Been, and Andrew Haughwout 2010. The Role of Neighborhood Characteristics in Mortgage Default Risk: Evidence from New York City. The Furman Center, New York University, New York, NY.
14. Charles, Kerwin Kofi, and Erik Hurst 2002. "The Transition to Home Ownership and the Black-White Wealth Gap. The Review of Economics and Statistics 84(2):281-97.
15. Dempster, A. P., D. B. Rubin, and R. K. Tsutakawa 1981. "Estimation in Covariance Components Models. Journal of the American Statistical Association 76:341-53.
16. Ellen, Ingrid Gould. 1998. "Stable Racial Integration in the Contemporary United States: An Empirical Overview. Journal of Urban Affairs 20:27-42.
17. Farley, Reynolds, and William Frey 1994. "Changes in the Segregation of Whites from Blacks During the 1980s: Small Steps Toward a More Integrated Society. American Sociological Review 59:23-45.
18. Feagin, Joe, and Melvin P. Sikes 1995. Living with Racism: The Black Middle Class Experience. Boston, MA: Beacon Press.
19. Federal Financial Institutions Examination Council (FFIEC). 2009a. History of HMDA. Home Mortgage Disclosure Act Accessed March 1, 2011:
20. Federal Financial Institutions Examination Council (FFIEC) 2009b. "A Guide to HMDA Reporting." FFIEC :1-121.
21. Federal Reserve Board. 2005. Speech by Vice-Chairman Roger W. Ferguson, Jr. Washington, DC Available online:
22. Federal Reserve Board. 2006. Federal Fair Lending Regulations and Statutes: Fair Housing Act Consumer Compliance Handbook. Available online:
23. Federal Reserve Board. 2009. Interagency Fair Lending Examination Procedures. Available online:
24. Fischer, Mary J. 2008. "Shifting Geographies: Examining the Role of Suburbanization in Blacks' Declining Segregation. Urban Affairs Review 43(4):475-96.
25. Fishbein, Allen J. 2003. "The Ongoing Experiment with 'Regulation from Below': Expanded Reporting Requirements for the HMDA and CRA. Housing Policy Debate 3(2):601-36.
26. Flippen, Chenoa. 2004. "Unequal Returns to Housing Investments? A Study of Real Housing Appreciation among Black, White and Hispanic Households. Social Forces 82(4):1523-51.
27. Friedman, Samantha. 2008. "Do Declines in Residential Segregation Mean Stable Neighborhood Racial Integration in Metropolitan America? Social Science Research 37:920-33.
28. Friedman, Samantha, and Gregory Squires 2005. "Does the Community Reinvestment Act Help Minorities Access Traditionally Inaccessible Neighborhoods? Social Problems 52(2):209-31.
29. Furman Center. 2010. Mortgage Lending During the Great Recession: HMDA 2009. Furman Center for Real Estate and Urban Policy, New York University.
30. Galster, George. 1990. "Racial Steering by Real Estate Agents: Mechanisms and Motives. The Review of Black Political Economy 19(1):39-63.
31. Galster, George. 2001. "On the Nature of Neighborhood. Urban Studies 38(12):2111-24.
32. Garner, C. L., and S. W. Raudenbush 1991. "Neighborhood Effects on Educational Attainment: A Multilevel Analysis. Sociology of Education 64:251-62.
33. George, Darren, and Paul Mallery 2007. SPSS for Windows, Step by Step. Boston: Pearson.
34. Goldstein, H. 1995. Multilevel Statistical Models, Second Edition. New York: John Wiley.
35. Green, R., and S. Wachter 2007. "The Housing Finance Revolution." Prepared for the 31st Economic Policy Symposium: Housing, Housing Finance, and Monetary Policy. Kansas City: Federal Reserve Bank of Kansas City.
36. Hanlon, Bernadette. 2009. "A Typology of Inner-Ring Suburbs: Class, Race, and Ethnicity in U.S. Suburbia. City & Community 8(3):221-44.
37. Harris, David R. 1999. "Property Values Drop When Blacks Move In Because...": Racial and Socioeconomic Determinants of Neighborhood Quality. American Sociological Review 64:461-79.
38. Hedeker, Donald. 2005. "Generalized Linear Mixed Models." In Encyclopedia of Statistics in Behavioral Science, edited by B. Everitt and D. Howell (pp. 729--744). New York: Wiley.
39. Hernandez, Jesus. 2009. "Redlining Revisited: Mortgage Lending Patterns in Sacramento 1930-2004. International Journal of Urban and Regional Research 33:291-313.
40. Hill, Shirley A. 2005. A Gender Perspective on Families and Relationships. Lanham, MD: Rowman and Littlefield.
41. Holloway, S. R. 1998. "Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio. Annals of the Association of American Geographers 88(2):252-76.
42. Hunter, W. C., and M. B. Walker. 1993. "The Cultural Affinity Hypothesis and Mortgage Lending Decisions. The Journal of Real Estate Finance and Economics 13(1): 57--70.
43. Iceland, John, and Kyle Anne Nelson 2008. "Hispanic Segregation in Metropolitan America: Exploring the Multiple Forms of Spatial Assimilation. American Sociological Review 73(5):741-65.
44. Iceland, John, and Rima Wilkes 2006. "Does Socioeconomic Status Matter? Race, Class, and Residential Segregation. Social Problems 53(2):248-73.
45. Immergluck, Dan. 2004. Credit to the Community: Community Reinvestment and Fair Lending Policy in the United States. Armonk, NY: M.E. Sharpe.
46. Immergluck, Dan. 2009. Foreclosed: High-Risk Lending, Deregulation, and the Undermining of America's Mortgage Market. Ithaca, NY: Cornell University Press.
47. Jargowsky, P. A. 1997. Poverty and Place: Ghettos, Barrios, and the American City. New York, NY: Russell Sage.
48. Krivo, Lauren, and Robert Kaufman 2004. "Housing and Wealth Inequality: Racial-Ethnic Differences in Home Equity in the United States. Demography 41(3):585-605.
49. Krivo, Lauren, Ruth D. Peterson, and Danielle C. Kuhl 2009. "Segregation, Racial Structure and Neighborhood Violent Crime. American Journal of Sociology 114(6):1765-1802.
50. Listokin, D., and Casey, S. 1980. Mortgage Lending and Race. New Brunswick, NJ: Center for Urban Policy Research, Rutgers University.
51. Longford, Nicholas T. 1993. Random Coefficient Models. Oxford: Clarendon.
52. Madar, Josiah, and Allegra Glashausser 2011. "The Evolving Crisis in Context: Recent Developments for Tenants in the Foreclosure Crisis." In Forging a New Housing Policy: Opportunity in the Wake of Crisis, edited by Christopher Niedt and Mark Silver (pp. 1--70). Hempstead, NY: Hofstra.
53. Massey, Douglas S. 1990. "Segregation and the Making of the Underclass. American Journal of Sociology 96:329-57.
54. Massey, Douglas S., and Nancy A. Denton 1987. "Trends in the Residential Segregation of Blacks, Hispanics, and Asians: 1970-1980. American Sociological Review 52:802-25.
55. Massey, Douglas S., and Nancy A. Denton 1993. American Apartheid: Segregation and the Making of the Underclass. Cambridge, MA: Harvard University Press.
56. Massey, D. S., and S. M. Kanaiaupuni 1993. "Public Housing and the Concentration of Poverty. Social Science Quarterly 74(1):109-22.
57. McLanahan, Sara, and Christine Percheski 2008. "Family Structure and the Reproduction of Inequalities. Annual Review of Sociology 34:257-76.
58. Morris, C., and Normand, S. 1992. Hierarchical Models for Combining Information and for Meta-Analysis. Bayesian Statistics 4:321-44.
59. Munnell, Alicia, Geoffrey M. B. Tootell, Lynn E. Browne, and James McEneaney 1996. "Mortgage Lending in Boston: Interpreting HMDA Data. American Economic Review 86(1):25-53.
60. National Community Reinvestment Coalition (NCRC). 2007. 30th Anniversary: The Community Reinvestment Act. Washington, DC: National Community Reinvestment Coalition.
61. Nee, Victor, Jimy Sanders, and Scott Sernau 1994. "Job Transitions in an Immigrant Metropolis: Ethnic Boundaries and the Mixed Economy. American Sociological Review 59:849-72.
62. Oliver, Melvin L., and Thomas M. Shapiro 1995. Black Wealth/White Wealth: A New Perspective on Racial Inequality. New York: Routledge.
63. Pedersen, Camille, and Lucy Delgadillo 2007. "Residential Mortgage Default in Low- and High-Minority Census Tracts. Family and Consumer Sciences Research Journal 35(4):374-91.
64. Portes, Alejandro, and Robert Manning 1986. "The Immigrant Enclave: Theory and Empirical Examples." In Majority and Minority: The Dynamics of Race and Ethnicity in American Life, edited by Norman R. Yetman (pp. 319--332). Boston, MA: Allyn and Bacon.
65. Portes, Alejandro, and Min Zhou 1993. "The New Second Generation: Segmented Assimilation and its Variants. Annals of the American Academy of Political and Social Science 530:74-96.
66. Raudenbush, S. W., and Byrk, A. S. 1985. "Empirical Bayes Meta-Analysis. Journal of Educational Statistics 10:75-98.
67. Raudenbush, S. W., and Byrk, A. S.. 2002. Hierarchical Linear Models, Second Edition. London: Sage Publications.
68. Raudenbush, S. W., and R. Sampson 1999. "Econometric: Toward a Science of Assessing Ecological Setting, With Application to the Systematic Social Observations of Neighborhood. Sociological Methods 29:1-41.
69. Reid, Carolina. 2005. Achieving the American Dream? A Longitudinal Analysis of the Homeownership Experiences of Low-Income Households. Working Paper No. 05-20. Center for Social Development, Washington University, St. Louis, MO.
70. Ross, Stephen L., and John Yinger 2002. The Color of Credit: Mortgage Discrimination, Research Methodology and Fair-Lending Enforcement. Cambridge, MA: MIT Press.
71. Rugh, Jacob S., and Douglas S. Massey 2010. "Racial Segregation and the American Foreclosure Crisis. American Sociological Review 75(5):629-51.
72. Sampson, R. J., S. W. Raudenbush, and F. Earls 1997. "Neighborhoods and Violent Crime: A Multilevel Study of Collective Efficacy. Science 277:918-24.
73. Schuetz, Jenny, Vicki Been, and Ingrid Gould Ellen 2008. "Neighborhood Effects of Concentrated Mortgage Foreclosures. Journal of Housing Economics 17(4):306-19
74. Shapiro, Thomas M. 2004. The Hidden Cost of Being African-American: How Wealth Perpetuates Inequality. Oxford: Oxford University Press.
75. Shlay, Anne B. 2005. "Low-Income Homeownership: American Dream or Delusion? Urban Studies 43(3):511-31.
76. Singer, J. D. 1998. "Using SAS PROC MIXED to Fit Multi-level Models, Hierarchical Models, and Individual Growth Models. Journal of Educational and Behavioral Statistics 23(4):323-55.
77. South, Scott J., and Kyle D. Crowder 1997. "Escaping Distressed Neighborhoods: Individual, Community, and Metropolitan Influences." American Journal of Sociology 102(4):1040-84.
78. Spader, Jonathan S., and Roberto G. Quercia 2008. "Mobility and Exit from Homeownership. Housing Policy Debate 19(4):675-709.
79. SPSS. 2005. Linear Mixed-Effects Modeling in SPSS: An Introduction to the Mixed Procedure. Chicago: SPSS Inc.
80. SPSS. 2010. "Generalized Linear Mixed Models." In IBM SPSS Advanced Statistics, 19 (pp. 95--125). Armonk, NY: SPSS Inc.
81. Squires, Gregory D. 2002. Urban Sprawl. Washington, DC: Urban Institute.
82. Squires, Gregory D., Derek S. Hyra, and Robert N. Renner 2009. "Segregation and the Subprime Lending Crisis." Presented at the 2009 Federal Reserve System Community Affairs Research Conference, Washington, DC. Working Draft, version 4.10.09.
83. Squires, Gregory D., and Sally O'Connar 2001. Color and Money. Albany, NY: State University of New York Press.
84. Squires, Gregory D., and William Velez 1987. "Neighborhood Racial Composition and Mortgage Lending: City & Suburban Differences. Journal of Urban Affairs 9(3):217-232.
85. Timberlake, Jeffrey M. 2002. "Separate, But How Unequal? Ethnic Residential Stratification, 1980 to 1990. City & Community 1(3):251-66.
86. U.S. Census Bureau. 2000. "Census Tracts and Block Numbering Areas." U.S. Census Bureau Geography Division. Available online: Accessed March 29, 2011.
87. U.S. Census Bureau. 2010. "Resident Population Data: Population Density, " U.S. Census Bureau. Available online: Accessed April 4, 2011.
88. U.S. Department of Commerce. 2011. Residential Vacancies and Homeownership in the Fourth Quarter of 2010. U.S. Census Bureau News CB11-10.
89. Van Order, Robert, and Peter Zorn 2000. "Income, Location and Default: Some Implications for Community Lending. Real Estate Economics 28(3):385-404.
90. Vesselinov, Elena, and Andrew Beveridge 2011. "Avenues to Wealth or Roads to Financial Ruin? Homeownership and the Distribution of Mortgage Foreclosures in Neighborhood" In Forging a New Housing Policy: Opportunity in the Wake of Crisis, edited by Christopher Niedt and Marc Silver (pp. 45--55). Hempstead, NY: National Center for Suburban Studies.
91. Wachter, Susan M., and Isaac F. Megbolugbe 1992. "Impacts of Housing and Mortgage Discrimination. Housing Policy Debate 3(2):332-70.
92. Wilkes, Rima, and John Iceland 2004. "Hypersegregation in the Twenty-First Century. Demography 41(1):23-36.
93. Wilson, William Julius. 1980. The Declining Significance of Race. Chicago: University of Chicago Press.
94. Wilson, William Julius. 1990. The Truly Disadvantaged: The Inner City, the Underclass, and Public Policy. Chicago: University of Chicago Press.
95. Wilson, William Julius. 1997. When Work Disappears: The World of the New Urban Poor. New York, NY: Vintage.
96. Wilson, William Julius, and Richard P. Taub 2006. There Goes the Neighborhood: Racial, Ethnic, and Class Tensions in Four Chicago Neighborhoods and Their Meaning for America. New York: Alfred Knopf.
97. Wyly, Elvin K., and Steven R. Holloway 1999. "The Color of Money Revisited: Racial Lending Patterns in Atlanta's Neighborhoods. Housing Policy Debate 10(3):555-600.