Can Miami Convince The Supreme Court That Subprime Loans Hurt Cities, Too?

Can Miami Convince The Supreme Court That Subprime Loans Hurt Cities, Too?

A group of housing scholars argued that there is a direct link between the harm to borrowers documented by people such as Rugh and financial losses incurred by cities. Citing more than a decade of economic and sociological research from a variety of sources, Justin Steil, a professor of law and urban planning at MIT and one of the authors of the brief, explained, “the data is well established that foreclosures do lead to decreases in neighboring property values, which then lead to decreases in city revenues in an amicus brief filed in support of Miami. Foreclosures, ” he added, “also result in more expenses by the town in re-securing those properties, dealing with the vandalism, squatting, fires. And in case the areas don’t recuperate, it simply continues to be a continuous issue for those communities to cope with. ”

Supporters associated with banking institutions in this case say that if any such thing, leaders of urban centers like Miami encouraged the influx of credit within their municipalities.

Supporters associated with the banking institutions in this full case state that if such a thing, leaders of metropolitan areas like Miami encouraged the influx of credit within their municipalities. “I really think Miami would like to have this both ways, ” stated Mark Calabria, manager of monetary legislation studies in the Cato Institute. “If the banking institutions weren’t conducting business in Miami, they’d have trouble with that. It’s hard for me to believe that Miami will have been best off if Bank of America and Wells Fargo hadn’t been there. ”

There is an attempt to find out more generally speaking exactly what will have occurred in the event that banking institutions hadn’t provided this kind of glut of high-risk loans, especially to minority borrowers surviving in segregated neighborhoods, in accordance with Dan Immergluck, a metropolitan planning teacher at Georgia Tech. Continue reading “Can Miami Convince The Supreme Court That Subprime Loans Hurt Cities, Too?”