Price Discrimination in the Housing Market on Mexican Immigrants

Abstract

The 2004-2006 lending boom that took place in the United States opened up the market for prospective Mexican immigrant homeowners. Through the use of predatory tactics, brokers targeted this minority group to provide them with the "best possible loans" that were attractive because of their teaser rates but ridden with high interest rates and high penalty payments that would eventually lead a decrease in their homeownership. The lending boom did not benefit Mexican immigrants because by 2007 they had high exit rate from the housing market that was comparable to the increase in new homeowners during the subprime lending of 2004-2006.