Disparate predation? A geography of financial harm

Authors: Kevin Martyn*, University of South Florida
Topics: Economic Geography, Development
Keywords: Predatory lending, Crisis, Economics, Finance
Session Type: Paper
Day: 4/10/2018
Start / End Time: 4:40 PM / 6:20 PM
Room: St. Charles, Marriott, River Tower Elevators, 41st Floor
Presentation File: No File Uploaded

In the years since the most recent financial crisis, it has become clear that changes in the mortgage lending market in the pre-crisis period were implicated in both the severity and character of the event. Meanwhile, many scholars have noted that the vicissitudes of the crisis have been unevenly distributed along familiar lines. Several hypotheses have been proposed to test the potential intersections of these phenomena. One of those, the role of predatory lending, has been somewhat neglected for a variety of reasons. In contrast to explanations reliant solely on the influence of economic factors, predatory lending has the potential to connect the dots. As others have noted, predatory lending can be thought as a modern manifestation of redlining; as financial market inclusion on explicitly disadvantageous terms (Aalbers 2016). Using the proxy measure for predatory lending developed by Kristin Crossney (2017), this study investigates the socioeconomic characteristics which placed an area at higher risk for predatory lending activity in the pre-crisis period. The investigation relies on proprietary datasets of both foreclosures and mortgages, as well as Home Mortgage Disclosure Act and Census data. The local context for this study is important: a sunbelt city with a high concentration of foreclosures in the post-crisis period. No other study has previously addressed the issue of predatory lending in Tampa.

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