Full Citation
Title: Using Original Data to Uncover Pathways to Latino Disparities in Foreclosure
Citation Type: Conference Paper
Publication Year: 2015
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Abstract: In the recent housing collapse Latino homeowners experienced the highest foreclosure rate and the largest losses in home equity and household wealth. We ask a straightforward question: Does nativity or immigrant status help explain the elevated foreclosure rate among Latinos? We examine mechanisms that potentially explain disparities faced by Latinos in the Orlando, Florida region. We consider the role of nativity along with two other rival explanations, place stratification and cultural affinity. We introduce new variables and develop new approaches to assess the role of lender assignment of Latino officers, the combination of Latino borrowerofficer dyads, and the recent immigrant status of Latino borrowers. We uncover important differences in the institutional representation of Latino officers in the prime vs. subprime division of each of bank. We also find that Latino borrowers with Latino officers are more likely than non-Latino borrowers with non-Latino officers to turn to (or be steered into) the subprime lending division, more likely to receive a high cost loan, and more likely to experience mortgage foreclosure. We detect a potentially potent effect of nativity among more recent immigrants using a proxy variable based on the type of identification used by borrowers to verify their identity at the time of closing the mortgage. Our study advances our understanding of how nativity may structure Latino disparities and raises questions worthy of future research.
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Authors: Rugh, Jacob, S.; Allen, Ryan
Conference Name: Annual Meeting of the Urban Affairs Association
Publisher Location:
Data Collections: IPUMS USA
Topics: Methodology and Data Collection, Other
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