Eventi del
23 2012 12:30 - 13:30
Via Roentgen 1, II floor, room 2 e4 sr 03
Race, Redlining, and Subprime Loan Pricing
Ruben Hernandez-Murillo, Federal Reserve Bank of St. Louis
Abstract: we investigate whether race and ethnicity influenced subprime loan pricing during 2005, the peak of the subprime mortgage expansion. We combine loan-level data on the performance of non-prime securitized mortgages with individual- and neighborhood-level data on racial and ethnic characteristics for metropolitan areas in California and Florida. Using a model of rate determination that accounts for predicted loan performance, we evaluate the presence of statistical and taste-based discrimination, as well as disparate impact and disparate treatment discrimination, in mortgage rates. We find evidence of redlining as well as adverse pricing for blacks and Hispanics.