Cornell University

CPC Innovations in Population Science: Jacob William Faber

Friday, March 16, 2018 at 12:00pm to 1:15pm

MVR G87

Redlined Yesterday and Redlined today: the Home Owners Loan Corporation's Long Shadow

 

The Home Owners Loan Corporation (HOLC), passed during the Great Depression, stabilized a mortgage market in which half of all debt was in default. While designed as short term relief, HOLC had a lasting effect on the mortgage market through institutionalizing the racist practice of denying mortgages to communities of color. Over subsequent decades, “redlining” funneled billions of dollars away from black neighborhoods and shaped segregation patterns and the racial wealth gap. Contemporary housing inequality is a result of this history of racialized exclusion. This paper combines newly-digitized archival data with data describing recent mortgage outcomes to investigate the intransigence of spatial inequality in housing finance. I show that borrowers in the early Twenty First Century were at a severe disadvantage when pursuing mortgages in neighborhoods redlined by HOLC appraisers in the first half of the Twentieth Century. Specifically, such applicants were more likely to be denied loans and receive subprime loans. Furthermore, foreclosures were more common in redlined areas during the Great Recession. This paper shows that the geographic patterns of vulnerability to exclusion and exploitation are remarkably stable and highlights the role of persistent institutional marginalization in replicating racial and spatial inequalities.

Event Type

Seminar

Departments

Cornell Population Center, Institute for the Social Sciences, Center for the Study of Inequality

Tags

Jacob William Faber, isscal

Website

http://www.cpc.cornell.edu/

Contact E-Mail

mc129@cornell.edu

Contact Name

Meg Cole

Speaker

Jacob William Faber, Assistant Professor of Public Service

Speaker Affiliation

New York University, Wagner

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