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作者

来源

HOUSING POLICY DEBATE,Vol.28,Issue5,P.770-796

语言

英文

关键字

Mortgages; credit; minorities; prepayment; HOUSING BOOM; MINORITY HOMEOWNERS; EQUITY EXTRACTION; BORROWERS; MARKET; RACE; HOME; AMERICAN; INCOME; RISK

作者单位

[Lambie-Hanson, Lauren] Fed Reserve Bank Philadelphia, Philadelphia, PA USA. [Reid, Carolina] Univ Calif Berkeley, Dept City & Reg Planning, Berkeley, CA 94720 USA. Reid, C (reprint author), Univ Calif Berkeley, Dept City & Reg Planning, Berkeley, CA 94720 USA. E-Mail: c_reid@berkeley.edu

摘要

Despite falling interest rates and federal policy intervention, many borrowers who could financially gain from refinancing have not done so. We investigate the rates at which, relative to prime borrowers, subprime borrowers seek and take out refinance loans, conditional on not experiencing mortgage default. We find that starting in 2009, subprime borrowers are about half as likely as prime borrowers to refinance, although they still shop for mortgage credit, indicating their interest in refinancing. This disparity is driven in part by the tightened credit environment postfinancial crisis, and the fact that many subprime borrowers were ineligible for the Home Affordable Refinance Program (HARP). In addition, we find that refinance rates have been significantly lower for black and Hispanic borrowers, even after controlling for borrower credit status. We argue that these barriers to refinancing for subprime borrowers have long-term implications for social stratification and wealth building.