The Subprime Mortgage Crisis
The Role of Residential Segregation and Impact on the American South
DOI:
https://doi.org/10.47611/jsrhs.v12i4.5143Keywords:
segregation, mortgage lending, American South, discrimination, subprime loan, finance, mortgage bondAbstract
This study is an analysis of the causes and effects of the subprime mortgage crisis with a specific focus on the role that residential segregation and discriminatory practices played and the impact that the financial crisis had on the American South. The project delves into the inner workings behind the financial crisis and the distinctive roles of mortgage lenders, investment banks, and other financial institutions in the magnification and extension of credit risk around the world through the United States' housing and financial markets.
Many college professors were interviewed for this project, including Gary Hoover, a professor at Tulane University and the Executive Director of the Murphy Institute. He was also invited to speak at the first Nobel Peace Prize Summit to speak on the subject of the "Economics of Inequality." Two other professors who were interviewed for the article are Daniel Keniston, an assoicate professor at LSU's Department of Economics, and Brian Andrews, a senior instructor in LSU's Department of Finance, Executive Director of LSU's Real Estate Research Institute and Commerical Banking Initiative, and the Principal of Andrews Commercial Real Estate Services.
The purpose of this project is to discover the most critical effects of the financial breakdown, the extent to which repercussions were disproportionate in Black and other minority communities, and the social outcomes of the subprime mortgage crisis on the American South. This study delves into an important piece of American history and attempts to uncover the subtleties of the U.S. housing and financial markets.
Downloads
References or Bibliography
Ann, C., Keith, H., Olivia, W. (2019, November 17). They Call it Steering. Newsday. https://projects.newsday.com/long-island/steering-real-estate-agents/
Erik, S., Matt, N., Jeramy, T., Rebecca, N., Unai, A., Sharon, K. (2021, March 19). Equity in Economic Opportunity: How Race, Place, and Class Impact Economic Mobility in Indianapolis. Savi. https://www.savi.org/feature_report/equity-in-economic-opportunity-how-race-place-and-class-impact-economic-mobility-in-indianapolis/
Jeremy, T., Unai, A., Matt, N. (2021, June 24). The Lasting Impacts of Segregation and Redlining. Savi. https://www.savi.org/2021/06/24/lasting-impacts-of-segregation/
Jessica, A. (2018, April 30). New Report Analyzes 50 Years of the Fair Housing Act and Calls for Stronger Enforcement of Fair Housing Laws. National Fair Housing Allegiance. https://nationalfairhousing.org/new-report-analyzes-50-years-of-the-fair-housing-act-and-calls-for-stronger-enforcement-of-fair-housing-laws/
Patrick, B., Fernando, F., Stephen L. R. (2017, April 29). What Drives Racial and Ethnic Differences in High-Cost Mortgages? The Role of High-Risk Lenders, The Review of Financial Studies, Vol. 31, no. 1, pp. 175-205, https://doi.org/10.1093/rfs/hhx035
Faber, J. W. (2020). We Built This: Consequences of New Deal Era Intervention in America’s Racial Geography. American Sociological Review, 85(5), 739–775. https://doi.org/10.1177/0003122420948464
Monica, P. (2012, November 21). The Collapse of Black Wealth. The American Prospect. https://prospect.org/civil-rights/collapse-black-wealth/
Algernon, A. (2012, January 19). A good credit score did not protect Latino and black borrowers. Economic Policy Institute. https://www.epi.org/publication/latino-black-borrowers-high-rate-subprime-mortgages/
Michael, P. (2009, June 6). Bank Accused of Pushing Mortgage Deals on Blacks. The New York Times https://www.nytimes.com/2009/06/07/us/07baltimore.html
Algernon, A (2008, June 10). Subprime mortgages are nearly double for Hispanics and African Americans. Economic Policy Institute. https://www.epi.org/publication/webfeatures_snapshots_20080611/
Debbie, B., Wei, L., Keith S.E. (2010, June 18). Foreclosures by Race and Ethnicity. Center for Responsible Lending. https://www.responsiblelending.org/mortgage-lending/research-analysis/foreclosures-by-race-and-ethnicity.pdf
Gwen, S. (2008, October 24). Net Worth: You Weren’t Counting on your Equity, Were You?. The Society Pages. https://thesocietypages.org/socimages/2008/10/24/net-worth-you-werent-counting-on-your-equity-were-you/
Michela, Z. (2019, July 15). Racial Disparities in Home Appreciation. Center for American Progress. https://www.americanprogress.org/article/racial-disparities-home-appreciation/
Paul, T., Rakesh, K., Richard, F., Gabriel, V., Seth, M. (2011, July 26). Wealth Gaps Rise to Record Highs Between Whites, Blacks, Hispanics. Pew Research Center. https://www.pewresearch.org/social-trends/2011/07/26/wealth-gaps-rise-to-record-highs-between-whites-blacks-hispanics/
Bhutta, Neil, Andrew C. Chang, Lisa J. Dettling, and Joanne W. Hsu (2020). "Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances," FEDS Notes. Washington: Board of Governors of the Federal Reserve System, September 28, 2020, https://doi.org/10.17016/2380-7172.2797.
Rakesh, K., Anthony, C., (2017, November 1). How wealth inequality has changed in the U.S. since the Great Recession, by race, ethnicity and income. Pew Research Center. https://www.pewresearch.org/short-reads/2017/11/01/how-wealth-inequality-has-changed-in-the-u-s-since-the-great-recession-by-race-ethnicity-and-income/
Craig, B., Alemayehu, B., Brian, G. (2023, May 22). 341 U.S. Counties Experiencing Persistent Poverty. United States Census Bureau. https://www.census.gov/library/stories/2023/05/persistent-poverty-areas-with-long-term-high-poverty.html
Sonya, R., Tallese, J., Elizabeth, H., Malcolm, D. (2011, September 1). The Black Population: 2010. United States Census Bureau. https://www.census.gov/library/publications/2011/dec/c2010br-06.html
Lisa, M., Sara, H., (2018, December 19). The Great Recession, Families, and the Safety Net. Institute for Research on Labor and Employment. https://irle.berkeley.edu/publications/irle-policy-brief/the-great-recession-families-and-the-safety-net/
Nicholas, J. (2020, May 27). The Great Recession Badly Hurt Kids’ Schooling; Today’s Recession Could Do Much Worse. Center on Budget and Policy Priorities. https://www.cbpp.org/blog/the-great-recession-badly-hurt-kids-schooling-todays-recession-could-do-much-worse
Knight, D. S., & Strunk, K. O. (2016). Who Bears the Costs of District Funding Cuts? Reducing Inequality in the Distribution of Teacher Layoffs. Educational Researcher, 45(7), 395–406. https://doi.org/10.3102/0013189X16670899
Bradbury, Katharine and Burke, Mary A. and Triest, Robert, Within-School Spillover Effects of Foreclosures and Student Mobility on Student Academic Performance (July, 2014). FRB of Boston Working Paper No. 15-6, Available at SSRN: https://ssrn.com/abstract=2675699
Sarah, C. (2012, May 31). How Much did the Financial Crisis Cost? Frontline. https://www.pbs.org/wgbh/frontline/article/how-much-did-the-financial-crisis-cost/
Published
How to Cite
Issue
Section
Copyright (c) 2023 William McComiskey
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright holder(s) granted JSR a perpetual, non-exclusive license to distriute & display this article.
