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Activity Number:
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68
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Type:
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Contributed
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Date/Time:
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Sunday, August 6, 2006 : 4:00 PM to 5:50 PM
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Sponsor:
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Section on Risk Analysis
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| Abstract - #306435 |
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Title:
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Investigating the Determinants of Financial Harm and Predatory Lending through RDD and Victim Population Surveys
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Author(s):
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Danna Moore*+
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Companies:
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Washington State University
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Address:
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SESRC, Pullman, WA, 99164-4014,
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Keywords:
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survey ; predatory lending ; mortgage harm ; financial harm
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Abstract:
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The increase in subprime mortgage credit has allowed many individuals that have less than prime-quality credit to borrow money. Many of these borrowers have fallen prey to predatory lenders. Little is known about these victims. Our analysis takes advantage of a unique survey of mortgage borrowers involved in a large predatory lending settlement in WA State and makes comparisons with the general population. The purpose is to examine the factors affecting the likelihood borrowers will fall victim to predatory lending. We measure the extensiveness of damage. Profiles revealed that the entire gamut of demographics were represented and harm is most associated with financial behaviors. Financial literacy is a complex aggregate analysis of factors knowledge, experience, and behaviors. Logit analyses provide the predicted odds of factors characterizing financial harm.
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