What Drives Racial and Ethnic Differences in High-Cost Mortgages? The Role of High-Risk Lenders

• 成果类型: Article
• 署名作者: Bayer, Patrick; Ferreira, Fernando; Ross, Stephen L.
• 署名单位: Duke University; National Bureau of Economic Research; University of Pennsylvania; University of Connecticut
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx035
• 发表日期: 2018
• 页码: 175
• 关键词: discrimination; RACE; neighborhoods; borrowers; boston

摘要

This paper examines racial and ethnic differences in high-cost mortgage lending in seven diverse metropolitan areas from 2004 to 2007. Controlling for credit score and other risk factors, AfricanAmerican and Hispanic borrowers are 103% and 78% more likely to receive high-cost mortgages for home purchases. Alarge part of the increase is attributable to sorting across lenders (55%-65%), and this, in turn, can be largely accounted for by the lender's ex post foreclosure risk. The remaining within-lender differences are also concentrated in high-risk lenders, revealing the central role of these institutions in explaining market-wide racial and ethnic differences.