Abstract

http://ssrn.com/abstract=2106055
 
 

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Analyzing Determinants of Foreclosure of Middle-Income Borrowers of Color in the Atlanta, GA Metropolitan Area


Katrin B. Anacker


George Mason University - School of Public Policy

James H. Carr


Federal National Mortgage Association (Fannie Mae)

Archana Pradhan


National Community Reinvestment Coalition (NCRC)

July 14, 2012

GMU School of Public Policy Research Paper No. 2013-01

Abstract:     
Foreclosures have disproportionately affected borrowers and communities of color. Many studies have concentrated on the nation and specific metropolitan areas, but few academic studies have focused on Atlanta. Using a merged data set consisting of Home Mortgage Disclosure Act (HMDA), U.S. Census, and Lender Processing Services (LPS) data and utilizing a logistic regression model, we analyze the likelihood of foreclosure in the Atlanta, GA metropolitan area. We find that African American borrowers are 52 percent and Hispanic borrowers 159 percent more likely to go into foreclosure, controlling for key financial variables. We also find that African American middle-income borrowers are 35 percent more likely to go into foreclosure. Moreover, we find that exotic mortgage products, such as balloon mortgages, adjustable rate mortgages (ARMs) and mortgages with a prepayment penalty have a higher likelihood of foreclosure than standard 30-year fixed rate mortgages.

Number of Pages in PDF File: 36

Keywords: foreclosure, borrowers of color, communities of color, housing equity, U.S., Atlanta, GA metropolitan area, logistic regression

JEL Classification: C12, C20, C51, D63

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Date posted: July 15, 2012  

Suggested Citation

Anacker, Katrin B. and Carr, James H. and Pradhan, Archana, Analyzing Determinants of Foreclosure of Middle-Income Borrowers of Color in the Atlanta, GA Metropolitan Area (July 14, 2012). GMU School of Public Policy Research Paper No. 2013-01. Available at SSRN: http://ssrn.com/abstract=2106055 or http://dx.doi.org/10.2139/ssrn.2106055

Contact Information

Katrin B. Anacker (Contact Author)
George Mason University - School of Public Policy ( email )
3351 Fairfax Dr
Arlington, VA 22201
United States
James H. Carr
Federal National Mortgage Association (Fannie Mae) ( email )
3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
United States
Archana Pradhan
National Community Reinvestment Coalition (NCRC) ( email )
727 15th Street, NW, Suite 900
Washington, DC 20005
United States
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