Source: Real estate loan Disclosure Work investigation 1993–2000, Decennial Census 1990, HUD Subprime Bank Record

Source: Real estate loan Disclosure Work investigation 1993–2000, Decennial Census 1990, HUD Subprime Bank Record

Description: The newest shape plots new progression in the share of subprime financing to own treatment (reddish dashed line) and handle (black strong range) groups. The procedure class describes census tracts having Black society share from the top quartile. Recurring display of subprime money is actually constructed by the partialling aside county repaired outcomes.

The new show from subprime funds grows just after 1995 since primary loan providers reduce credit for the minority neighbourhoods prior to low-minority neighbourhoods. Contour step 3 portrays this aspect succinctly. Subprime lenders enhanced their credit in the minority neighbourhoods relative to non-minority neighbourhoods, however, the new loss in finest financing when you look at the minority neighbourhoods preceded the increase for the subprime financing and you may try healthier during the magnitude, suggesting one prime lenders went basic.

Description: The fresh shape shows the brand new estimate results of the difference-in-differences model. Oriented parameters will be the logarithm away from total amount of mortgage given from the primary lenders (leftover committee) and you will subprime loan providers (right committee). Continua a leggere