Penn IUR Publications

Document Type

Journal Article

Date of this Version

January 1999


Copyright The American Real Estate and Urban Economics Association (AREUEA). Reprinted from Real Estate Economics, Volume 27, Issue 1, Spring 1999, pages 105-134.


Economics, Economic Development and Real Estate, Housing and Community Development


This study examines the performance of home purchase loans originated by a major depository institution in Philadelphia under a flexible lending program between 1988 and 1994. We examine long-term delinquency in relation to neighborhood housing market conditions, borrower credit-history scores and other factors. We find that likelihood of delinquency declines with increasing neighborhood housing market activity. Also, likelihood of delinquency is greater for borrowers with low credit-history scores and those with high ratios of housing expense to income, and when the property is unusually expensive for the neighborhood where it is located.



Date Posted: 07 July 2006

This document has been peer reviewed.