Impact Mortgage Brokers have Foreclosure Rates within Lower-Income and Minority Community Areas in Chicago
Several researchers suggests that the growing problem of foreclosure rates within lower income and minority neighborhoods has been due to the growing subprime home loan market and increasing number of mortgage brokers. As of 2005, mortgage brokers dealt with 45 percent of all mortgage loans and more than 71 percent of all non-prime home mortgage loans (Mortgage Brokers Association [MBA], 2006). This research examines the impact mortgage brokers have on foreclosures rates within lower income and minority community areas in Chicago. This study reviews the effects that governmental policies, predatory lending tactics, fraudulent lending tactics, and the subprime market have on consumers and the operation of mortgage brokers. In addition, this research focuses on the impact that, race, income and the accessibilities to banks have on foreclosure rates. By using the Arc Geographic Information System and conducting interviews with the Research Director for Woodstock Institute and a mortgage counselor from ACORN, the research establishes that mortgage brokers have a major affect on foreclosures rates within lower income and minority community areas in Chicago. Furthermore there are needed implications of laws that regulate mortgage brokers and their lending practices.
School:
Grambling State University
Department:
Social Sciences
Research Advisor:
Lisa K. Bates
Department of Research Advisor:
Urban and Regional Planning
Year of Publication:
2007