Table 3.

Estimated Excess Risk Due to Cumulative Disadvantage in Baltimore

		Combined Risk Lending
	N	Observed Incidence	Adjusted Prediction	Excess Incidence
Black Borrowers (vs. White Borrowers)
All Black Borrowers	1,259	45.0%	30.2%	14.8%
Borrower Income over $50,000	698	41.2%	30.5%	10.7%
Private Label Securitization Loans	877	63.6%	42.9%	20.7%
All Borrowers in Black Tracts (vs. All Borrowers in White Tracts)
All Borrowers in Black Tracts	1,288	41.8%	29.3%	12.5%
Borrower Income over $50,000	743	37.2%	29.0%	8.2%
Private Label Securitization Loans	847	62.7%	40.9%	21.8%
Black Borrowers in Black Tracts (vs. White Borrowers in White Tracts)
Black Borrowers in Black Tracts	1,016	46.3%	31.2%	15.1%
Borrower Income over $50,000	538	42.2%	31.0%	11.2%
Private Label Securitization Loans	709	65.3%	44.5%	20.8%
Black Borrowers in White Tracts (vs. White Borrowers in White Tracts)
Black Borrowers in White Tracts	243	39.9%	14.2%	25.7%
Borrower Income over $50,000	160	37.5%	15.0%	22.5%
Private Label Securitization Loans	168	56.6%	21.1%	35.4%
White Borrowers in Black Tracts (vs. White Borrowers in White Tracts)
White Borrowers in 50%-100% Black Tracts	272	25.0%	16.3%	8.7%
Borrower Income over $50,000	205	23.9%	16.2%	7.7%
Private Label Securitization Loans	138	49.3%	28.9%	20.4%

Note: Excess amount paid equals average adjusted predictive margins for probability of combined risk lending in Appendix Table 1 subtracted from the actual observed mean for the sub-sample in each row . Note: Combined Risk Loan consists of High Cost Subprime Loans plus at least two additional high risk features: Adjustable Rate, Interest Only Amortization, Low/No Documentation, CLTV>90%, Balloon, Prepayment Penalty, or Debt-to-Income Ratio > 55%. See text for more details.