Race, Space, and Cumulative Disadvantage: A Case Study of the Subprime Lending Collapse.

ABSTRACT: In this article, we describe how residential segregation and individual racial disparities generate racialized patterns of subprime lending and lead to financial loss among black borrowers in segregated cities. We conceptualize race as a cumulative disadvantage because of its direct and indirect effects on socioeconomic status at the individual and neighborhood levels, with consequences that reverberate across a borrower's life and between generations. Using Baltimore, Maryland as a case study setting, we combine data from reports filed under the Home Mortgage Disclosure Act with additional loan-level data from mortgage-backed securities. We find that race and neighborhood racial segregation are critical factors explaining black disadvantage across successive stages in the process of lendi

SUBMITTER: Rugh JS 

PROVIDER: S-EPMC4962882 | biostudies-literature | 2015 May

REPOSITORIES: biostudies-literature