IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v8y1980i2p229-246.html
   My bibliography  Save this article

A Model of Localized Mortgage Lending Behavior

Author

Listed:
  • John M. Clapp

Abstract

Loan administration costs and the costs of search for information about risk are found to be determinants of spatial interest rate differentials. These costs are independent of dollar loan size; therefore, rational lending policies can produce higher interest rates (or lower term to maturity) in low‐income communities. But the premium (lower maturity) should be related to lower loan size and risk differentials. Public policy should be directed toward compiling and verifying an information bank which would allow lenders to search efficiently for information about risk. An empirical methodology designed to test for mortgage deficiency in minority areas was developed through case studies. This indicated the utility of specifying the supply and demand for mortgages at the neighborhood level of aggregation. Trends in neighborhood property values were identified as important and overlooked measures of lending risk. Further exploration of the hypothesis that Spanish‐speaking areas are mortgage deficient is suggested by the cases.

Suggested Citation

  • John M. Clapp, 1980. "A Model of Localized Mortgage Lending Behavior," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 8(2), pages 229-246, June.
    • Handle: RePEc:bla:reesec:v:8:y:1980:i:2:p:229-246
    DOI: 10.1111/1540-6229.00215
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.00215
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.00215?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:8:y:1980:i:2:p:229-246. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.