NYU Urban Seminar: Stephen Ross on Foreclosure Clusters

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On March 1st, the Spring 2016 NYU Urban Seminar Series, co-hosted by the NYU Furman Center and Marron Institute, welcomed Stephen Ross, a professor of Economics at the University of Connecticut. He led a discussion about his research paper entitled "Foreclosure Clusters and the Concentration of High Cost Lending."

Ross suggested that the strong positive cross-sectional correlation between foreclosure and the concentration of high cost lending in geographic areas erodes significantly as additional borrower and underwriting controls are added. There is a large positive correlation between foreclosure rates of purchase year cohorts of loans and cohort share of high cost loans. In addition, these geographic clusters of foreclosure appear associated with the market representation of high cost lenders.  As high cost lenders enter a market, all borrowers regardless of lender are more likely to experience a foreclosure. 

The NYU Urban Seminar series is co-hosted by the NYU Furman Center and the Marron Institute. The speaker series is focused on research with implications for urban policy, and features a variety of researchers from across the U.S. discussing their work. The NYU Urban Seminar is open to the public; registration is required.