Dr. C. Aujean Lee, an Assistant Professor in the Regional + City Planning Department, recently co-authored the article, “Fintech’s relationship with subprime lending in immigrant gateway metropolitan areas,” in the Journal of Urban Affairs. Dr. Lee and her collaborator Tyler Haupert looked at the all-online mortgage loan application process known as fintech loans and found that immigrant gateways are associated with higher rates of subprime lending than areas with low rates of immigration.
The study suggests that metropolitan and tract-level racial and ethnic patterns remain key factors in shaping subprime lending rates in a rapidly evolving mortgage credit market. These findings highlight the continuing importance of race and ethnicity in lending and the need for monitoring discrimination in evolving financial technology.
Read the full article in the Journal of Urban Affairs. Congratulations to Dr. Lee on her publication!
Abstract
Financial technology lending (fintech) is a subset of the mortgage industry characterized by all-online application processes and the inclusion of non-traditional applicant data in underwriting decisions. While national studies suggest that fintech lenders mimic traditional lenders and distribute subprime loans to minority borrowers and neighborhoods at higher rates than to white borrowers and neighborhoods, these studies exclude regional differences by race/ethnicity and nativity. We assess variation in neighborhood-level fintech and traditional subprime lending rates across immigrant gateway metropolitan areas. Using Home Mortgage Disclosure Act (HMDA) data, we find that immigrant gateways are associated with higher rates of subprime lending than metropolitan areas with low rates of immigration. Results suggest that neighborhood-level composition of Asian and Latinx residents mediate the relationship between subprime lending and immigrant gateways in distinct ways depending on lender type. Findings suggest metropolitan and tract-level racial and ethnic patterns remain key factors in shaping subprime lending rates in a rapidly evolving mortgage credit market.
Gibbs College of Architecture is proud to recognize Petya Stefanoff, who is pursuing her doctorate in the Planning, Design & Construction (PDC) program, has been appointed the new role of Director of Community Development for the City of Shawnee, Oklahoma. She joined the city in 2024.
Gibbs College of Architecture is pleased to announce that Amber N. Wiley, Ph.D., associate professor in the Division of Planning, Landscape Architecture and Design and director of the Institute for Quality Communities, has received national recognition for her book Model Schools in the Model City. The book has been named a finalist for the 2026 the PROSE Awards.
Gibbs College of Architecture Regional + City Planning Professor of Practice Vanessa Morrison and Associate Professor of Architecture Deborah Richards’ Open Design Collective received top honors at the inaugural BlackSpace Urbanist Collective Studio KIN Pitch Night Competition, held last month in Brooklyn, New York City.
