Mortgage Lending and Race

Mortgage Lending and Race examines the urban financing problem—the difficulty faced by residents of urban neighborhoods in obtaining institutional mortgages or loans for purchasing, refinancing, or repairing properties. An economic model, Listokin and Casey argue, perceives lenders as being guided solely by economic considerations. An empirical analysis supports an eco-race model: lenders are guided by both economic and racial influences. Such behavior is exhibited when considering both the macro and micro dynamic.

To convey their arguments, Listokin and Casey divide their research into four parts: Problem and Model Definition; Empirical Investigation; Summary and Conclusions; and Bibliography. The first considers the objectives of the analysis of the economic and eco-race models and the findings of the existing literature. The second section discusses the methodology chosen for the investigation of this problem and presents macro neighborhood and micro applicant analyses. The third summarizes findings, interprets their significance, and suggests the linkage of the findings to existing theory. The final section is an annotated bibliography, citing books, articles, hearings, newspaper reports, other sources on the urban financing problem, and proposed solutions. Given the state of affairs in the American lending crisis, this book will provide insight on solving the current financial dilemma; as such it should be read by all policymakers.