Individual and neighborhood effects on FHA mortgage activity: evidence from HMDA data

Abstract

The effects of individual and neighborhood characteristics on relative FHA-insured mortgage applications and originations are examined. A sample of low- and moderate-income households drawn from the 1990 and 1991 Home Mortgage Disclosure Act is analyzed using census tract data. Although the relationship between relative FHA-insured mortgage activity and minority composition in a census tract is not significant, there is a negative relationship between median family income and FHA-insured mortgage activity controlling for individual characteristics of borrowers and some census tract characteristics.