Changing Industrial Organization of Housing Finance and Changing Role of Community-Based Organizations

• Published in: Building Assets, Building Credit p. 107
• Main Authors: WILLIAM C. APGAR, ALLEN J. FISHBEIN
• Format: Book Chapter
• Language: English
• Published: Brookings Institution Press and Harvard University Joint Center for Housing Studies 25.05.2006
• Subjects: Administrative law; Bank loans; Banking industry; Banking regulation; Behavioral sciences; Business; Civil law; Commercial regulation; Communities; Contract law; Contracts; Debt contracts; Economic disciplines; Economic regulation; Economics; Finance; Financial contracts; Financial economics; Financial institutions; Financial instruments; Financial services industries; Foreclosures; Housing; Human geography; Human societies; Industrial sectors; Industry; Law; Lenders; Lending institutions; Loans; Mortgage loans; Property law; Real property law; Service industries; Social groups; Social sciences; Sociology; Subprime loans

Building on the recent revolution in computer technology and telecommunications, today’s mortgage market bears little resemblance to the one that existed just a few decades ago. While new approaches to mortgage marketing, underwriting, and servicing have prompted a surge in lending in lower-income and minority neighborhoods, this growth is linked to the emergence of a dual mortgage delivery system characterized by a noticeable absence of conventional prime mortgages in these same areas. Instead, low-income and minority borrowers and communities are disproportionately served by government-backed, subprime, or manufactured home lending, and exposed to new threats linked to rising rates of mortgage