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SUBPRIME MORTGAGE SEGMENTATION IN THE AMERICAN URBAN SYSTEM
Author(s) -
WYLY ELVIN K.,
MOOS MARKUS,
FOXCROFT HOLLY,
KABAHIZI EMMANUEL
Publication year - 2008
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/j.1467-9663.2007.00436.x
Subject(s) - metropolitan area , boom , denial , subprime mortgage crisis , proposition , financial system , business , economics , geography , financial crisis , keynesian economics , psychology , philosophy , archaeology , epistemology , environmental engineering , psychoanalysis , engineering
Research and policy debates in the United States have focused on the dramatic growth of mortgage lending in the risky subprime sector, which serves consumers with weaker credit histories, and its concentration in racially and ethnically marginalised communities. Evidence linking the subprime boom to the proliferation of predatory abuses, however, is often dismissed as anecdotal or isolated in a few unique places. In this paper, we undertake a geographical analysis of the central justifications for deregulated risk‐based pricing: the proposition that subprime credit serves those who would otherwise be excluded, and reduces exclusionary credit denials. Multivariate analyses of metropolitan‐ and individual‐level processes across the US urban system provide evidence suggesting that subprime mortgage segmentation exacerbates rather than reduces traditional inequalities of denial‐based exclusion.