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.
The Christopher C. Gibbs College of Architecture congratulates Dr. Tammy McCuen, Robert E. Busch Professor of Construction Science, on beginning her term as president of the Associated Schools of Construction (ASC), an international organization dedicated to advancing construction education through teaching, research and service.
Following years of contributions to the College’s research and strategic initiatives, Gibbs College shares that Associate Dean for Research and External Engagement Angela M. Person, PhD, will step down from her position at Gibbs College as she moves to Tucson with her family, effective June 30, 2026.
On April 24, 2026, the Christopher C. Gibbs College of Architecture hosted its annual Graduate Student Showcase, a celebration of research, design innovation, and creative exploration across all graduate programs within the College.
