Author Description

Examines the effect of neighborhood characteristics on the default of FHA mortgages. Analysis includes both neighborhood characteristics & characteristics of the individual loan & borrower, so that the effects of the neighborhood can be distinguished from those of the individual loan. Analysis seeks to distinguish the effects of neighborhood, race, ethnicity, & income from the effects of the individual borrower's status. Finds that lower tract income & higher tract black composition are assoc. with higher rates of default, whereas individual borrower race or income are unrelated to default. Examines possible causes for these findings. Charts & tables.