| A probit model predicting delinquency in mortgage payments is estimated, using demographic, employment, wealth, and loan characteristics. Particular attention is paid to respondents reporting the main reason for choosing the particular lender and loan as being "Because I thought it was the only place we could get credit." This factor is one of the strongest predictors for having one of the types of loans described above. An investigation into who would be predicted to answer in that manner follows, with race identified as a powerful predictor for the first time in any of the models, with a white respondent 8 percentage points less likely to name credit-constraint concerns as the main reason for choosing their mortgage. |
