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This paper examines racial and ethnic differences in high cost mortgage lending in seven diverse metropolitan areas from 2004-2007. Even after controlling for credit score and other key risk factors, African-American and Hispanic home buyers are 105 and 78 percent more likely to have high cost...
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characteristics in order to clarify how the subprime foreclosure crisis played out in minority areas. An innovation in our modeling …, we find that borrowers in minority neighborhoods, delineated by Census tracts, were less likely to default at high … finding that subprime borrowers in minority neighborhoods have a lower propensity to default at high CLTV stands in contrast …
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Recently, financial institutions have developed improved internal risk rating systems and emphasized the probability of default and loss given default. The default characteristics are studied for 756 loans from a French bank: CIC- Banque SNVB. A binomial logit regression is used to estimate...
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