IDEAS home Printed from https://ideas.repec.org/p/uct/uconnp/2003-09.html
   My bibliography  Save this paper

Other Things Being Equal: A Paired Testing Study of Discrimination in Mortgage Lending

Author

Listed:
  • Margery Austin Turner

    (Urban Institute)

  • Erin Godfrey

    (New York University)

  • Stephen L. Ross

    (University of Connecticut)

  • Robin R. Smith

    (Urban Institute)

Abstract

This article summarizes a recently completed study, funded by the U.S. Department of Housing and Urban Development (HUD) and conducted by the Urban Institute, of discrimination against black and Hispanic homebuyers when they visit mortgage lending institutions in two major metropolitan markets to make pre-application inquiries. It represents the first application of paired testing to rigorously measure discrimination in the mortgage lending process. The paired tests disclosed significant levels of adverse treatment on the basis of race and ethnicity, with African Americans and Hispanics receiving less information and assistance than comparable whites, even at this very early stage in the application process.

Suggested Citation

  • Margery Austin Turner & Erin Godfrey & Stephen L. Ross & Robin R. Smith, 2003. "Other Things Being Equal: A Paired Testing Study of Discrimination in Mortgage Lending," Working papers 2003-09, University of Connecticut, Department of Economics, revised May 2004.
    • Handle: RePEc:uct:uconnp:2003-09
    as

    Download full text from publisher

    File URL: https://media.economics.uconn.edu/working/2003-09R.pdf
    File Function: Revised version
    Download Restriction: no
    File URL: https://media.economics.uconn.edu/working/2003-09.pdf
    File Function: Original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, vol. 86(1), pages 25-53, March.
    2. Stephen L. Ross & John Yinger, 2002. "The Color of Credit: Mortgage Discrimination, Research Methodology, and Fair-Lending Enforcement," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182289, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao, Bo & Ondrich, Jan & Yinger, John, 2006. "Why do real estate brokers continue to discriminate? Evidence from the 2000 Housing Discrimination Study," Journal of Urban Economics, Elsevier, vol. 59(3), pages 394-419, May.
    2. Randall Campbell & Brandon Roberts & Kevin Rogers, 2008. "An Evaluation of Lender Redlining in the Allocation of Unsecured Consumer Credit in the US," Urban Studies, Urban Studies Journal Limited, vol. 45(5-6), pages 1243-1254, May.
    3. Lloyd Blanchard & Bo Zhao & John Yinger, 2005. "Do Credit Market Barriers Exist for Minority and Women Entrepreneurs?," Center for Policy Research Working Papers 74, Center for Policy Research, Maxwell School, Syracuse University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fidel Ezeala-Harrison & Glenda Glover & Jane Shaw-Jackson, 2008. "Housing Loan Patterns Toward Minority Borrowers in Mississippi: Analysis of Some Micro Data Evidence of Redlining," The Review of Black Political Economy, Springer;National Economic Association, vol. 35(1), pages 43-54, March.
    2. Manthos D. Delis & Panagiotis Papadopoulos, 2019. "Mortgage Lending Discrimination Across the U.S.: New Methodology and New Evidence," Journal of Financial Services Research, Springer;Western Finance Association, vol. 56(3), pages 341-368, December.
    3. Beck, T.H.L. & Behr, P. & Madestam, A., 2011. "Sex and Credit : Is There a Gender Bias in Microfinance?," Other publications TiSEM 65849ab0-04f2-4dc9-9824-3, Tilburg University, School of Economics and Management.
    4. Gabriel, Stuart A. & Rosenthal, Stuart S., 2005. "Homeownership in the 1980s and 1990s: aggregate trends and racial gaps," Journal of Urban Economics, Elsevier, vol. 57(1), pages 101-127, January.
    5. Patricia Funjika & Rachel M. Gisselquist, 2020. "Social mobility and inequality between groups," WIDER Working Paper Series wp2020-12, World Institute for Development Economic Research (UNU-WIDER).
    6. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2018. "What Drives Racial and Ethnic Differences in High-Cost Mortgages? The Role of High-Risk Lenders," The Review of Financial Studies, Society for Financial Studies, vol. 31(1), pages 175-205.
    7. Song Han, 2011. "Creditor Learning and Discrimination in Lending," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 1-27, October.
    8. James B. Kau & Lu Fang & Henry J. Munneke, 2019. "An Unintended Consequence of Mortgage Financing Regulation – a Racial Disparity," The Journal of Real Estate Finance and Economics, Springer, vol. 59(4), pages 549-588, November.
    9. Jonathan Spader, 2010. "Beyond Disparate Impact: Risk-based Pricing and Disparity in Consumer Credit History Scores," The Review of Black Political Economy, Springer;National Economic Association, vol. 37(2), pages 61-78, June.
    10. Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
    11. Robert B. Avery & Kenneth P. Brevoort & Glenn Canner, 2012. "Does Credit Scoring Produce a Disparate Impact?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 40, pages 65-114, December.
    12. Chan, Sewin & Haughwout, Andrew & Tracy, Joseph, 2015. "How Mortgage Finance Affects the Urban Landscape," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 987-1045, Elsevier.
    13. Thorsten Beck & Patrick Behr & Andreas Madestam, 2011. "Sex and Credit: Is There a Gender Bias in Lending?," Working Papers 411, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    14. Li, Wenli & Oswald, Florian, 2017. "Recourse and residential mortgages: The case of Nevada," Journal of Urban Economics, Elsevier, vol. 101(C), pages 1-13.
    15. Judith Clarke & Nilanjana Roy & Marsha Courchane, 2009. "On the robustness of racial discrimination findings in mortgage lending studies," Applied Economics, Taylor & Francis Journals, vol. 41(18), pages 2279-2297.
    16. Andrew, Mark & Haurin, Donald & Munasib, Abdul, 2006. "Explaining the route to owner-occupation: A transatlantic comparison," Journal of Housing Economics, Elsevier, vol. 15(3), pages 189-216, September.
    17. Cullen Goenner, 2010. "Discrimination and Mortgage Lending in Boston: The Effects of Model Uncertainty," The Journal of Real Estate Finance and Economics, Springer, vol. 40(3), pages 260-285, April.
    18. Suzuki, Masatomo & Kawai, Kohei & Shimizu, Chihiro, 2022. "Discrimination against the atypical type of tenants in the Tokyo private rental housing market: Evidence from moving-in inspection and rent arrear records," Journal of Housing Economics, Elsevier, vol. 58(PB).
    19. Schuetz, Jenny & Larrimore, Jeff & Merry, Ellen A. & Robles, Barbara J. & Tranfaglia, Anna & Gonzalez, Arturo, 2018. "Are central cities poor and non-white?," Journal of Housing Economics, Elsevier, vol. 40(C), pages 83-94.
    20. Abdul Munasib & Donald Haurin, 2007. "Time to First Homeownership:Racial Differences, and the Impact of 1986 Tax Reform Act," Economics Working Paper Series 0701, Oklahoma State University, Department of Economics and Legal Studies in Business, revised 2007.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uct:uconnp:2003-09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark McConnel (email available below). General contact details of provider: https://edirc.repec.org/data/deuctus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.