Hogarth, J. M. & Hilgert, M. A. (2002). A profile of consumers with high-rate home loans.
Financial Counseling and Planning, 13(1), 15-34.
A Profile of Consumers with High-rate Home Loans
Jeanne M. Hogarth1 and Marianne A. Hilgert2
Using the 1995 and 1998 Survey of Consumer Finances, we provide a profile of households with high-rate home-secured loans and explore the extent to which these loans reflect risk-based pricing. We find that risk-related characteristics are determinants of having high-rate loans, but that race, marital status, age, education, region, shopping behaviors, and type of financial institution also are significant.
Key words: Subprime lending, Mortgages, Home loans
1. Jeanne M. Hogarth, Program Manager, Consumer & Community Affairs, Federal Reserve Board, Washington DC 20551. Phone: 202-785-6024. Fax: 202-728-5850. E-mail: jeanne.m.hogarth@frb.gov
2. Marianne A. Hilgert, Research Assistant, Consumer & Community Affairs, Federal Reserve Board, Washington DC 20551. Phone: 202-452-2884. Fax: 202-728-5850. E-mail: marianne.a.hilgert@frb.gov
The analysis and conclusions set forth in this paper represent the work of the authors and do not indicate concurrence of the Federal Reserve Board, the Federal Reserve Banks, or their staff.