Market segmentation and lender specialization in the primary and secondary mortgage markets

Abstract

This paper provides a comprehensive evaluation of market segmentation and lender/purchaser specialization in the primary and secondary mortgage markets. It describes and assesses the 1990 Home Mortgage Disclosure Act (HMDA) data, which for the first time provide detailed information on the borrower and neighborhood racial and income characteristics of mortgage loan originations and securitizations in the primary and secondary mortgage markets. Evidence presented in the paper indicates that home purchase loan origination rates for black applicants—and, to a lesser degree, Hispanic applicants—appear to be significantly lower than those of other racial or ethnic groups. Similarly, the HMDA data reveal that home purchase mortgage origination rates in predominantly minority census tracts are significantly lower than those in predominantly white neighborhoods. The HMDA data also indicate a striking reliance of black borrowers on government‐backed forms of mortgage credit.

The paper further reveals that secondary market loan purchase distributions arrayed by borrower and neighborhood characteristics generally reflect those of home mortgage originations. The borrower and locational characteristics of home purchase loans acquired by the Government National Mortgage Association (GNMA) directly reflect that agency's legislated specialization in government‐backed loans, whereas the characteristics of loans acquired by Fannie Mae and Freddie Mac for the most part derive from the borrower and geographic composition of conventional home purchase loan originations. Findings of analyses of HMDA data raise concern regarding the access of minority and low‐income households and neighborhoods to mortgage finance. Those results also raise some question as to whether the federally chartered agencies in the secondary market are adequately promoting the availability of mortgage credit to low‐ and moderate‐income and minority households.     

Circle sentencing in Canada: A partnership of the community and the criminal justice system

Throughout North America, there has been an increasing interest in the development of alternative forums for dispute resolution that may more effectively address the needs of victims, offenders, and the community. Concurrent with this has been an attempt to alter the adversarial framework of the criminal justice system. This has included the development and implementation of case processing strategies premised on restorative justice and attempting to secure the participation of communities as partners in the resolution of disputes. One particularly innovative initiative is circle sentencing, which has been implemented in several communities in the Yukon, Canada. The procedure by which cases are processed in circle sentencing is outlined and the involvement of the offender, the victim, the community, and the territorial court are discussed.     

Institutional Recalibration and Judicial Delimitation

Throughout American history, a peculiar and recurrent disjunction has often arisen between the substance of transformative reforms and the decidedly less‐radical governing arrangements that arise in the aftermath of reform. To account for this disjunction, this article puts forth a theory of postreform “recalibration.” Political processes of recalibration are the means by which vague, indeterminate principles of reform are given operational meaning and translated into new governing arrangements. This article illuminates recalibration processes by examining two case‐studies: African American rights in the post‐Reconstruction era of the 1870s and 1880s, and labor rights in the post–New Deal era of the late 1930s. Finally, the article also highlights the crucial role of the Supreme Court in recalibration processes and sets forth a theory of judicial behavior as driven by an institutional interest in stability.     

Does the amount of participation matter? Public comments,agency responses and the time to finalize a regulation

The notice and comment rulemaking process is a fundamental part of how agencies write regulations. While this process is starting to receive more empirical attention, the question of how the number of comments that an agency receives affects its decision-making process has received little examination. This paper uses Boolean analysis to examine nine rules from two agencies at the Department of Health and Human Services and evaluates the impact of a high volume of comments on agency changes to proposed rules and the time an agency takes to finalize a proposed rule. These nine cases suggest that agencies are most likely to change their proposals when they receive a high volume of comments on highly complex rules that are not very politically salient. Highly complex rules are also likely to take a long time to finalize when there are many public comments however it is often other factors that cause a long delay between proposed and final rules.

The Importance of Trust in Government for Public Administration: The Case of Zoning

Many scholars argue that citizens with higher levels of political trust are more likely to grant bureaucratic discretion to public administrators than citizens with lower levels of trust. Trust, therefore, can relieve the tension between managerial flexibility and political accountability in the modern administrative state. Unfortunately, there is little empirical evidence showing that trust is actually associated with citizens' willingness to cede policy-making power to government. This article tests theories about political trust and citizen competence using the case of zoning. Trust in local government is found to be an important predictor of support for zoning, but trust in state government and trust in national government have no effect. These findings suggest that trust affects policy choice and helps determine how much power citizens grant to local administrators.     

Reparations for the Herero Genocide: Defining the limits of international litigation

The Herero were the first ethnic group to be subjected to genocidein the twentieth century. In 2001, the Herero became the firstethnic group to seek reparations for colonial policies thatfit the definition of genocide. The Herero are the latest plaintiffto use the procedures of the Alien Torts Claim Act of 1789 toseek reparations in a US federal court for war crimes committedoverseas. This article analyzes the legal arguments by Hererosagainst Germany within the context of current understandingsof international law and identifies the challenges that lieahead for this claim. The article also explores the implicationsof the Herero claim for other ethnic groups victimized by colonization.     

‘Get Brexit Done’: The New Political Divides of England and Wales at the 2019 Election

This article analyses the successful Conservative election campaign of 2019 and how it took advantage of a fractured political and economic landscape. It reviews the unique circumstances around the 2019 election and the ‘surprising death’ of a no-deal Brexit. We then analyse the divergent political communication strategies in the 2017 and 2019 Conservative campaigns showing how the latter was much more coherent and politically unorthodox. Drawing on socioeconomic, demographic and British Election Study data, we argue that Boris Johnson’s messaging was carefully tailored towards the demands of voters in the ‘red wall’ seats. Conservative success was built around an appeal to voters in these economically depressed ‘geographies of discontent’. But while tremendously successful, the coalition this created is potentially fragile. An unconventional, ‘leftish’ Conservative campaign built a new, diverse bloc of voters. It includes a number of left-wingers expecting change alongside traditional Conservative supporters, and will be hard to keep together given the economic turbulence ahead.