Consumer-lending discrimination in the FinTech Era *

• 成果类型: Article
• 署名作者: Bartlett, Robert; Morse, Adair; Stanton, Richard; Wallace, Nancy
• 署名单位: University of California System; University of California Berkeley; University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.047
• 发表日期: 2022
• 页码: 30-56
• 关键词: discrimination; FinTech; GSE mortgages; Credit scoring; Algorithmic underwriting; Big-data lending; Platform loans; statistical discrimination; Legitimate business necessity

摘要

U.S. fair-lending law prohibits lenders from making credit determinations that disparately affect minority borrowers if those determinations are based on characteristics unrelated to creditworthiness. Using an identification under this rule, we show risk-equivalent Lat-inx/Black borrowers pay significantly higher interest rates on GSE-securitized and FHA-insured loans, particularly in high-minority-share neighborhoods. We estimate these rate differences cost minority borrowers over $450 million yearly. FinTech lenders' rate dispar-ities were similar to those of non-Fintech lenders for GSE mortgages, but lower for FHA mortgages issued in 2009-2015 and for FHA refi mortgages issued in 2018-2019. (c) 2021 Elsevier B.V. All rights reserved.