Abstract

http://ssrn.com/abstract=2260367
 
 

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The Vulnerability of Minority Homeowners in the Housing Boom and Bust


Patrick J. Bayer


Duke University - Department of Economics; National Bureau of Economic Research (NBER)

Fernando V. Ferreira


University of Pennsylvania - The Wharton School

Stephen L. Ross


University of Connecticut - Department of Economics

April 29, 2013

Economic Research Initiatives at Duke (ERID) Working Paper No. 145

Abstract:     
This paper examines mortgage outcomes for a large, representative sample of individual home purchases and refinances linked to credit scores in seven major US markets in the recent housing boom and bust. Among those with similar credit scores, black and Hispanic homeowners had much higher rates of delinquency and default in the downturn. These differences are not readily explained by the likelihood of receiving a subprime loan or by differential exposure to local shocks in the housing and labor market and are especially pronounced for loans originated near the peak of the boom. Our findings suggest that those black and Hispanic homeowners drawn into the market near the peak were especially vulnerable to adverse economic shocks and raise serious concerns about homeownership as a mechanism for reducing racial disparities in wealth.

Number of Pages in PDF File: 41

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Date posted: May 3, 2013  

Suggested Citation

Bayer, Patrick J. and Ferreira, Fernando V. and Ross, Stephen L., The Vulnerability of Minority Homeowners in the Housing Boom and Bust (April 29, 2013). Economic Research Initiatives at Duke (ERID) Working Paper No. 145. Available at SSRN: http://ssrn.com/abstract=2260367

Contact Information

Patrick J. Bayer (Contact Author)
Duke University - Department of Economics ( email )
213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Fernando V. Ferreira
University of Pennsylvania - The Wharton School ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-7181 (Phone)
215-573-2220 (Fax)
HOME PAGE: http://real.wharton.upenn.edu/~fferreir/

Stephen L. Ross
University of Connecticut - Department of Economics ( email )
341 Mansfield Road
Storrs, CT 06269
United States
860-486-3533 (Phone)
860-486-4463 (Fax)
Feedback to SSRN


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