How subprime lending emerged in minority neighbourhoods

Jakučionytė, Eglė and Singh, Swapnil (2022) How subprime lending emerged in minority neighbourhoods. USApp – American Politics and Policy Blog (22 Jan 2022). Blog Entry.

Text (usappblog-2022-01-22-how-subprime-lending-emerged-in-minority) - Published Version Download (578kB)

• https://blogs.lse.ac.uk/usappblog/2022/0...

Abstract

It is a commonly held belief that subprime lenders, who issue loans to risky borrowers, provide credit to high-risk communities that would not be able to get credit from low-risk lenders. Eglė Jakučionytė and Swapnil Singh challenge this view. They show that policy changes introduced in 1995 by US institutions Fannie Mae and Freddie Mac increased securitisation costs for lending in minority neighbourhoods. Prime lenders moved out and, with less competition, subprime lenders managed to enter these minority neighbourhoods with greater ease.

Item Type:	Online resource (Blog Entry)
Official URL:	https://blogs.lse.ac.uk/usappblog/
Additional Information:	© 2022 The Authors
Divisions:	LSE
Subjects:	H Social Sciences > HV Social pathology. Social and public welfare. Criminology H Social Sciences > HG Finance J Political Science > JK Political institutions (United States)
Date Deposited:	17 Mar 2022 15:03
Last Modified:	11 Dec 2024 21:04
URI:	http://eprints.lse.ac.uk/id/eprint/114245

Actions (login required)

View Item