Briefing
Redlining and U.S. Residential Mortgage Market Pricing
Ellul, Andrew; Marques, David; Sapriza, Horacio; Sclip, Alex; Taylor, Jack (2024-07)
Does redlining have implications for mortgage pricing today? This article summarizes our research assessing long-lasting implications from the "residential security maps" developed by the Home Owners Loan Corp. in the 1930s that color/letter-coded U.S. neighborhoods. The study finds (1) that the average levels of mortgage rates and fees are modestly higher for all borrowers on the historically targeted (redlined, that is, C-coded or D-coded) side of a neighborhood color boundary; (2) that mortgage rates and fees are modestly higher for minorities on either side of the boundary; (3) that these ...
Richmond Fed Economic Brief , Volume 24 , Issue 21

Briefing
Bank Liquidity and Financing of Nonbank Mortgage Companies
Rebucci, Alessandro; Sclip, Alex; Sapriza, Horacio; te Kaat, Daniel (2025-08-27)
Nonbank mortgage companies (NMCs) are directly funded by banks and have significantly expanded their shares of the residential mortgage market.Bank liquidity helps drive the warehouse credit market for NMCs financing.We examine the COVID-19 shock and the subsequent boom in the mortgage market and find that banks with ex-ante higher liquidity expanded less aggressively in supplying credit to NMCs. This lower credit expansion is stronger for smaller NMCs with fewer banking relationships.
Richmond Fed Economic Brief , Volume 25 , Issue 33