by Spencer Cowan and Katie Buitrago

The following analysis examines patterns of negative equity in communities of different racial and ethnic compositions in the Chicago six county region. It combines 2011 data on negative equity in Chicago region ZIP codes with U.S. Census data on the racial/ethnic composition of ZIP Code Tabulation Areas (ZCTA). It finds that negative equity is disproportionately concentrated in the Chicago region’s African American, Latino, and majority minority neighborhoods, and that borrowers in communities of color have much lower equity than do borrowers in predominantly white communities. This report concludes with recommendations to reduce the impact of declining property values and the number of homeowners with negative equity, including broader use of principal reduction loan modifications and short sales.

This report examined geographical, gender-related, and chapter choice trends in data from federal bankruptcy courts in Cook County. It found that women make up a larger share of individual bankruptcy filers in all communities, and a dramatically larger share in African American communities, than men do. Additionally, bankruptcy filers in African-American communities are more than twice as likely as filers in predominantly white communities to choose Chapter 13 bankruptcy. The report concludes with recommendations to improve economic opportunity for individuals in African-American communities.

Press release |  Fact sheet |  Video | Audio Briefing (mp3)

Paying More for the American Dream V examines changes in conventional refinance lending between 2008 and 2009 in seven metropolitan areas: Boston, Charlotte, Chicago, Cleveland, Los Angeles, New York City, and Rochester, NY. It also compares 2009 loan denial rates across neighborhoods. In all seven cities analyzed, lenders denied loan applications at significantly higher rates in communities of color than in predominantly white neighborhoods. The report concludes with policy recommendations to improve access to sustainable credit in communities of color.

press release | briefing (mp3)

Geoff Smith and Sarah Duda

The following report illustrates the relationship between foreclosures and vacant properties in the City of Chicago.  It combines data from the City of Chicago on vacant and potentially vacant buildings with data on foreclosure filings, completed foreclosure auctions, and property transfers to better understand the number of vacant properties that have at some point been part of the foreclosure process.  It identifies a group of “red flag” properties which are troubled vacant properties where a foreclosure has been filed, but no outcome has been reached.  The report also identifies a group of lender-owned, foreclosed properties that are most likely vacant and not in compliance with the City of Chicago’s vacant building regulations. The report ends with policy recommendations to address problems associated with troubled, vacant foreclosures. Included are appendices of troubled, foreclosed vacant properties by Chicago community area and ward.

Press release |  Fact sheet |  Briefing (mp3)

Geoff Smith and Sarah Duda

This report analyzed credit score data from a major national credit bureau in large Illinois zip codes and found significant disparities in credit characteristics between communities of color and predominantly white communities, as well as between major metropolitan areas and non-metropolitan areas. The report explains the importance of credit scores and how they are used, and recommends several policies to improve economic opportunity for people and communities impacted by low credit scores. Included is an appendix with demographics and credit score averages and distributions for large Illinois zip codes.

This report, released by a national coalition of research, policy and advocacy organizations, examined mortgage lending patterns of banks in seven metropolitan areas and found a dramatic decrease in prime home purchase and refinance loans to communities of color. The report includes appendices for each metropolitan area and policy recommendations.

press release

Geoff Smith and Sarah Duda

This report summarizes key foreclosure trends in the Chicago region for 2009 and updates Woodstock Institute reports and fact sheets released previously that illustrated key aspects of the foreclosure crisis, such as the spread of the crisis to suburban communities, the growing number of condominium foreclosures in Chicago, and the accumulated impact of the crisis on lower-income communities. The report includes detailed appendices with data for City of Chicago community areas and municipalities in the Chicago Six County Area, as well as DeKalb, Winnebago, and Kendall County.

Geoff Smith, Sarah Duda, and Katie Buitrago

This report found that high-cost refund anticipation loans (RALs), which allow borrowers to receive their expected tax refund in one to three days, cost Illinoisans more than $114 million in 2006, with tax filers in African-American communities 3.5 times more likely to use RALs than the state average. The report is based on an analysis of 2006 tax data and recommends policy changes, such as a RAL fee cap and better funding of free tax preparation, to reduce the negative impact of RALs on low-wealth communities.

press release

Geoff Smith, Sean Zielenbach, Jennifer Newon, and Sarah Duda

This study examines the nature of the interaction of banks and community development financial institutions (CDFIs) in small business lending. We examine the experience of six different CDFIs that vary by size, corporate structure, and market. We explore how they both collaborate and compete with regulated lenders, and how changes in local and national market dynamics affect their activities. Our case studies are not necessarily representative of the CDFI industry, but they offer insights on the factors that shape CDFIs’ interactions with and responses to more mainstream institutions. Our findings are therefore more descriptive than prescriptive, although we offer suggestions for both CDFI practice and future research.

press release

This report examines financial products that take advantage of the economic vulnerability of older persons and highlights key features of some alternatives. It is based on extensive conversations with leading members of the policy and advocacy community, financialservices industry, and bank regulatory agencies. The report concludes with recommendations for both bank regulatory andfinancial institution policy to advance financial products that protect the economic security of older persons.

press release