Community Reinvestment and Credit Risk: Evidence from an Affordable-Home-Loan Program
This study examines the performance of home purchase loans originated by a major depository institution in Philadelphia under a flexible lending program between 1988 and 1994. We examine long-term delinquency in relation to neighborhood housing market conditions, borrower credit-history scores and other factors. We find that likelihood of delinquency declines with increasing neighborhood housing market activity. Also, likelihood of delinquency is greater for borrowers with low credit-history scores and those with high ratios of housing expense to income, and when the property is unusually expensive for the neighborhood where it is located. Copyright American Real Estate and Urban Economics Association.
Year of publication: |
1999
|
---|---|
Authors: | Calem, Paul S. ; Wachter, Susan M. |
Published in: |
Real Estate Economics. - American Real Estate and Urban Economics Association - AREUEA. - Vol. 27.1999, 1, p. 105-134
|
Publisher: |
American Real Estate and Urban Economics Association - AREUEA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Borrowing constraints during the housing bubble
Barakova, Irina, (2014)
-
The neighborhood distribution of subprime mortgage lending
Calem, Paul Seth, (2004)
-
Community reinvestment and credit risk : evidence from an affordable-home-loan program
Calem, Paul Seth, (1999)
- More ...