Title:
The impact of the subprime mortgage crisis on community health

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dc.contributor.advisor Boston, Thomas
dc.contributor.author Mothorpe, Christopher A. en_US
dc.contributor.committeeMember Maurizio Iacopetta
dc.contributor.committeeMember Patrick McCarthy
dc.contributor.department Economics en_US
dc.date.accessioned 2008-06-10T20:30:16Z
dc.date.available 2008-06-10T20:30:16Z
dc.date.issued 2008-04-02 en_US
dc.description.abstract Loans originated to borrowers with lower incomes and/or lower credit scores are classified as subprime. The spatial distribution of subprime loans is alarmingly concentrated in minority-dominated and low-income areas. Beginning in mid 2006 the subprime mortgage market began to see elevated levels of delinquent and defaulted loans. The causes are many but generally traced to the beginning of the reset periods for adjustable rate mortgages and the evaporation of demand for securitized subprime mortgages. As delinquent and default rates in subprime mortgages rise, areas with a concentration of high-risk borrowers are at risk to decline. The decline can be measured across four different groups of factors that indicate the health of a community. The four groups are: physical, institutional, socioeconomic and the residential body. The residential body factor group refers to the citizens of a community and their civic involvement. The analysis uses binary logistic regression to identify communities that are commonly associated with subprime mortgage defaults. Subprime loans in the ten-county Atlanta Metropolitan Area are the focus of the study. The analysis treats each census tract in the ten counties as an individual community. The sample loans are geocoded to the census tract level allowing defaulted loans to be tied to communities and their characteristics. The data is collected from a variety of sources including the U.S. Census Bureau, the Atlanta Regional Commission and RR Donnelley s Credit Risk Management database. The results indicate that the probability of subprime mortgage defaults are associated with higher vacancy rates, population loss, declining property tax revenues, depreciating property values, and declining owner reinvestment in their properties. Potential spill over impacts to the community include higher crime rates, decreased school funding and degradation of public infrastructure. en_US
dc.description.degree M.S. en_US
dc.identifier.uri http://hdl.handle.net/1853/22546
dc.publisher Georgia Institute of Technology en_US
dc.subject Community health en_US
dc.subject Subprime mortgage crisis en_US
dc.subject Mortgage defaults en_US
dc.subject.lcsh Mortgage loans
dc.subject.lcsh Comunity life
dc.subject.lcsh Social surveys
dc.subject.lcsh Atlanta Metropolitan Area (Ga.)
dc.title The impact of the subprime mortgage crisis on community health en_US
dc.type Text
dc.type.genre Thesis
dspace.entity.type Publication
local.contributor.corporatename School of Economics
local.contributor.corporatename Ivan Allen College of Liberal Arts
relation.isOrgUnitOfPublication 15802d30-e8cc-4b9a-86ef-2a59ac816e4b
relation.isOrgUnitOfPublication b1049ff1-5166-442c-9e14-ad804b064e38
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