The accumulation of foreclosed properties: trajectories of metropolitan REO inventories during the 2007–2008 mortgage crisis

Foreclosure

There Goes the Neighborhood: The Effect of Single-Family Mortgage Foreclosures on Property Values

This report shows that foreclosures have a significant negative effect on neighborhood property values. Although foreclosures have long been considered a problem associated with FHA loan programs, recent research has shown that the explosion in foreclosures that began in the 1990s was primarily driven by the growth of high-risk, conventional subprime lending

Risky Business: An Econometric Analysis of the Relationship Between Subprime Lending and Neighborhood Foreclosures

Illustrates the quantitative relationship between the level of subprime lending in a neighborhood and foreclosure levels in a subsequent period, while controlling for changes in economic and demographic characteristics that might also effect foreclosure rates

The Impact of Single Family Mortgage Foreclosures on Neighborhood Crime

Examines the impact of foreclosures of single-family mortgages -- both conventional and government guaranteed -- on levels of violent and property crime at the neighborhood level

Homebuying in New Orleans Before and After Katrina: Patterns by Space, Race and Income

Natural disasters can conceivably have significant impacts on the “neighborhood sorting” of different racial or economic groups across intrametropolitan space. Using Home Mortgage Disclosure Act data we examine mortgage-financed homebuying activity within the New Orleans MSA before and after Hurricane Katrina. We find that, while the total amount of homebuying in the 7-parish New Orleans MSA was relatively unchanged between 2004 and 2006, homebuying in the city declined significantly, and declined most in places experiencing severe storm damage. We also find that after Hurricane Katrina, the proportion of homebuyers in the region and the city who were African-American or low-income declined. Finally, we find that segregation levels of African-American and lower-income homebuyers f declined in the year following Katrina. However, some of this effect is likely due to smaller overall numbers of lower-income and African-American buyers in the region.New Orleans, housing after disasters, segregation

Renting the Dream: The Rise of Single-Family Rentership in the Sunbelt Metropolis

In the aftermath of the foreclosure crisis, there has been a marked shift toward renting in the United States, with a large increase in households renting single-family homes. In the 50 largest metropolitan areas, the number of detached, single-family rental homes (SFRs) increased from 3.8 million to 5.8 million from 2006 to 2015. Single-family rentership rates increased in all 50 large metro areas, with the percentage of single- family units that are rented increasing from 11.3% to 16%. Notably, the nine metropolitan areas with the largest increases were all located in the Sunbelt. Given expected neighborhood sorting, it is important to consider neighborhood increases in SFRs. In one large Sunbelt metro area, Atlanta, increases in SFRs from 2010 to 2015 were particularly large in older, inner- county diverse suburbs. Regression results show that, controlling for other neighborhood characteristics, neighborhoods with larger Asian, Latino, and black populations saw larger increases in SFRs. The effects were particularly high in neighborhoods with larger Latino and, especially, Asian populations. Another key finding is that, in neighborhoods with lower property values, more foreclosures during the crisis were associated with sizeable increases in SFRs. However, more foreclosures in neighborhoods with high property values were not associated with increases in SFRs. This is possibly due to the exclusionary nature of high property-value suburbs and the strong demand in such neighborhoods for owner-occupied housing. Implications for policy and research are considered

Redlining Redux: Black Neighborhoods, Black-Owned Firms, and the Regulatory Cold Shoulder

There has been a growing body of evidence indicating race-based discrimination in small business lending. However, very little research has examined potential geographic redlining effects. Thisarticle measuress mall businesslending flowsto neighborhoodsin the Philadelphia metropolitan area. It advancespre viousw ork by measuring differential credit flowswhile accounting for variationsin the credit scoresof small firms. Black tractsrecei ve fewer loansafter accounting for firm density, firm size, industrial mix, neighborhood income, and the credit quality of local firms. The findings suggest that federal bank regulators should expand small business lending data to include racial characteristics and application information, in part to help identify potentially discriminating lenders for further investigation. Also, Community Reinvestment Act regulations should pay more attention to the distribution of small business loans, by both race and income of neighborhood

Deadsong

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Foreclosures and Neighborhoods: The Shape and Impacts of the U.S. Mortgage Crisis

The U.S. mortgage crisis beginning in 2007 resulted in very high levels of foreclosures in many neighborhoods around the country. In addition to harming individual households, foreclosures had negative spillover effects on nearby properties and households, including lower property values and higher crime rates. To understand the effects of foreclosures on households and neighborhoods, it is important first to understand the demographic and geographic distributions of foreclosures and how they may have changed during the foreclosure crisis, which persisted for more than five years, from 2007 to beyond 2012. Spurred in part by the crisis, dozens of studies have been published on the effects of foreclosures on neighborhoods; somewhat fewer studies have systematically examined the intrametropolitan morphology of the crisis, including how this morphology varied across metropolitan areas and over time. This chapter first reviews the geographic incidence and concentrations of foreclosures, and then reviews evidence of the impacts of foreclosures on households and neighborhoods