Download or read book Discrimination and Racial Differences in Home Mortgage Interest Rates written by Gordon Crawford and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the possible yield premia paid by Asians, Hispanics, and African Americans borrowers to a national home mortgage lender in the years 1988-1989. The calculated premia are defined to hold daily market rates, rate lock protection, and borrower risk factors constant. Conventional loan interest rates are almost perfectly race- neutral. However, government (FHA and VA) credit models show significant, but very small premia paid by Hispanics and African Americans. The estimated premium for Hispanic borrowers is not robust to some reasonable alternative specifications. The differential for African American borrowers is more robust, but may be explained by the inability of African Americans to find alternatives to their rate commitments when rates fall.
Download or read book Discrimination and Racial Differences in Home Mortgage Interest Rates written by Gordon W. Crawford and published by . This book was released on 1995 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What We Know About Mortgage Lending Discrimination in America written by Margery Austin Turner and published by DIANE Publishing. This book was released on 2000-07 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S. Department of Housing and Human Development (HUD) presents the report "What We Know About Mortgage Lending Discrimination in America." The report outlines how discrimination can affect access to mortgage capital for minorities.
Download or read book Mortgage Lending Racial Discrimination and Federal Policy written by John Goering and published by Routledge. This book was released on 2018-12-20 with total page 665 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1997, this volume features a wealth of contributions discussing mortgage lending discrimination and the role of the FHA, fair lending enforcement and the Decatur case, along with the future of mortgage discrimination research. This key civil rights debate in the wake of the Fair Housing Act 25 years prior is evaluated and clarified through rigorous review of fair lending research, applied projects and enforcement activities to date. It argues forcefully that the right to take out a mortgage to buy a home should be conditioned only upon one’s credit worthiness and not on one’s race or ethnic group.
Download or read book Racial Differences in Home Ownership and Home Equity Among Preretirement Aged Households written by Samuel Myers and published by . This book was released on 2013 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The problem of housing market discrimination and racial disparities in mortgage lending has taken on a new level of urgency ("Blacks, Hispanics Remain Most Likely to Be Denied Home Loans," 1992; Brenner, 1992; Zuckoff, 1992). Researchers and scholars, as well as federal officials, have begun to reexamine the underlying structures of mortgage and housing markets to understand the persistence of racial gaps in lending (Barefoot, 1992; Boston Federal Reserve, 1992; Myers & Chan, 1995). One particularly disturbing observation is that even during times when racial gaps in mortgage lending should have been narrowing -- such as in 1992 when interest rates began an unprecedented nosedive below double-digit rates -- the racial gaps persisted (Myers, 1994). Few minority individuals refinanced their loans during this period, even though loan refinancings became the most frequent form of mortgage loan during the period (Myers, 1994). Thus, not only were minority individuals less likely to obtain refinancings when they applied, they were less likely to apply. At least for middle-aged borrowers, the impact could be high debt levels carried into their retirement years. These high debt levels, along with low home ownership rates, may help explain the widely cited evidence of staggering net worth gaps between blacks and whites in America (Smith, 1993).
Download or read book Racial Disparities in Subprime Home Mortgage Lending written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2004 HMDA dataset contains new information on the interest rates of home mortgage loans. The fairness of assigned interest rates has long been disputed by fair-lending advocates, many of whom believe that racial discrimination plays a role in the interest rates lenders assign borrowers. Research suggests that the possibility of racial discrimination in home mortgage loan interest rates cannot be dismissed, but available evidence is weak and mired with a number of methodological and econometric issues. The current study uses the new information in the 2004 HMDA dataset to determine whether there are racial disparities in the likelihood that minorities receive a high-cost loan relative to whites. The present study finds that blacks are, on average, 13 percent more likely to receive a high-cost loan than whites are, when other borrower, lender, and neighborhood characteristics are held constant. The present study does not solve all methodological and econometric issues; therefore, results should be interpreted cautiously. Nevertheless, the gap between black and white borrowers should be further investigated in future research. The relationship between high-cost loans and predatory lending is discussed.
Download or read book Truth in Business and Home Lending Discrimination written by Wilbert Smith Jr and published by AuthorHouse. This book was released on 2008-01-02 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the existence of statistical disparities between whites and minorities in the extension home mortgage loans is acknowledged by all parties, disagreement exists as to the reasons for these disparities. Equal opportunity activists contend that racial discrimination by mortgage lending institutions is a contributing, if not the primary, source of these patterns. Other parties, however, suggest that the patterns reflect fundamental differences in the economic circumstances of population groups.
Download or read book Differences in the Cost of Mortgage Credit written by Gordon Crawford and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper accesses the mortgage origination processing system of a major national mortgage lender in the 1988-89 period to empirically measure mortgage interest rate differences paid by Asians, Hispanics, and African Americans. The calculated interest rate differences control for differences in market rates, rate lock protection, and borrower risk factors. In calculating a net interest rate, we test several different tradeoffs between interest rates and discount points. Under these strict controls, we find that conventional loan interest rates, while varying markedly between individuals, are largely race-neutral. Government credit models, however, show statistically significant, but economically insignificant, difference in interest rate premia paid by African Americans. These premia differences are approximately three basis points or $1.80 per month on an average loan. Additionally, African-American borrowers obtaining conventional mortgages and Hispanic borrowers obtaining government mortgages are not able to capture rate declines occurring during the borrower's rate-lock period.
Download or read book Racial Discrepancy in Mortgage Interest Rates written by Ping Cheng and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Existing research on racial discrimination in mortgage lending has overwhelmingly focused on whether black applicants are more likely to be denied for credit than comparable white applicants. This study investigates whether the approved black applicants are likely charged higher interest rates than their white counterparts. Using data from three waves of the U.S. Survey of Consumer Finance, our results suggest that black borrowers on average pay about 29 basis points more than comparable white borrowers. We also find that rate disparity mainly occurs to young borrowers with low education as well as those borrowers whose income and credit disqualify them for prime lending rates. Furthermore, among borrowers in the higher rate groups, black women seem to receive much more disparate treatment than black men. We conclude that, while the racial disparity in mortgage rates is widespread between black and white borrowers, it is the more financially vulnerable black women who suffer the most.
Download or read book Residential Mortgage Lending Disparities in Washington D C written by United States Commission on Civil Rights. District of Columbia Advisory Committee and published by . This book was released on 1998 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mortgage Lending Discrimination written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2008 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Discrimination in Mortgage Lending written by Robert Schafer and published by MIT Press (MA). This book was released on 1981 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book substitutes rigorous and systematic analysis for the undocumented claims that have characterized the debate on "redlining"--the denial of mortgage money to poorer neighborhoods. In addition, Schafer and Ladd discuss discrimination against individuals, appraisal practices, and the likelihood of default, analyze recent policy decisions, and recommend a range of new policies. The thorough documentation that supports this analysis was obtained through an examination of individual mortgage applications--denials as well as approvals--in New York and California, the only two states in which such data is available, its disclosure mandated under state law.One of the book's major findings is that discrimination in home financing is based far more on an individual's race than on the location of the property--that although the redlining debate has turned on the issue of geographic discrimination, the underlying reality is one of racial discrimination, and individuals are more often the targets than are neighborhoods.After an introductory chapter, "Discrimination in Mortgage Lending" takes up default risk in mortgage lending, appraisal practices, the flow of funds, lending decision models, the decision to lend in California, mortgage credit terms in California, the decision to lend in New York, mortgage credit terms in New York, a summary of results, and recommendations.
Download or read book Mortgage Discrimination written by and published by . This book was released on 1994 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Discrimination in Home Mortgage Lending written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Consumer and Regulatory Affairs and published by . This book was released on 1990 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Race and Default in Credit Markets written by Michael A. Stegman and published by DIANE Publishing. This book was released on 1996-07 with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt: A research & commentary on the critical policy issue of whether or not racial discrimination exists in the home mortgage lending industry. A collection of essays on this topic by experts such as John Yinger, Stephen Ross, & George Galster. Also includes commentaries on mortgage performance & housing market discrimination, default rates & their place in the controversy, & the role of FHA data in the lending discrimination discussion. Graphs, charts.
Download or read book Race for Profit written by Keeanga-Yamahtta Taylor and published by UNC Press Books. This book was released on 2019-09-03 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: LONGLISTED FOR THE 2019 NATIONAL BOOK AWARD FINALIST, 2020 PULITZER PRIZE IN HISTORY By the late 1960s and early 1970s, reeling from a wave of urban uprisings, politicians finally worked to end the practice of redlining. Reasoning that the turbulence could be calmed by turning Black city-dwellers into homeowners, they passed the Housing and Urban Development Act of 1968, and set about establishing policies to induce mortgage lenders and the real estate industry to treat Black homebuyers equally. The disaster that ensued revealed that racist exclusion had not been eradicated, but rather transmuted into a new phenomenon of predatory inclusion. Race for Profit uncovers how exploitative real estate practices continued well after housing discrimination was banned. The same racist structures and individuals remained intact after redlining's end, and close relationships between regulators and the industry created incentives to ignore improprieties. Meanwhile, new policies meant to encourage low-income homeownership created new methods to exploit Black homeowners. The federal government guaranteed urban mortgages in an attempt to overcome resistance to lending to Black buyers – as if unprofitability, rather than racism, was the cause of housing segregation. Bankers, investors, and real estate agents took advantage of the perverse incentives, targeting the Black women most likely to fail to keep up their home payments and slip into foreclosure, multiplying their profits. As a result, by the end of the 1970s, the nation's first programs to encourage Black homeownership ended with tens of thousands of foreclosures in Black communities across the country. The push to uplift Black homeownership had descended into a goldmine for realtors and mortgage lenders, and a ready-made cudgel for the champions of deregulation to wield against government intervention of any kind. Narrating the story of a sea-change in housing policy and its dire impact on African Americans, Race for Profit reveals how the urban core was transformed into a new frontier of cynical extraction.
Download or read book The Whiteness of Wealth written by Dorothy A. Brown and published by Crown. This book was released on 2022-03-22 with total page 289 pages. Available in PDF, EPUB and Kindle. Book excerpt: A groundbreaking exposé of racism in the American taxation system from a law professor and expert on tax policy NAMED ONE OF THE BEST BOOKS OF THE YEAR BY NPR AND FORTUNE • “Important reading for those who want to understand how inequality is built into the bedrock of American society, and what a more equitable future might look like.”—Ibram X. Kendi, #1 New York Times bestselling author of How to Be an Antiracist Dorothy A. Brown became a tax lawyer to get away from race. As a young black girl growing up in the South Bronx, she’d seen how racism limited the lives of her family and neighbors. Her law school classes offered a refreshing contrast: Tax law was about numbers, and the only color that mattered was green. But when Brown sat down to prepare tax returns for her parents, she found something strange: James and Dottie Brown, a plumber and a nurse, seemed to be paying an unusually high percentage of their income in taxes. When Brown became a law professor, she set out to understand why. In The Whiteness of Wealth, Brown draws on decades of cross-disciplinary research to show that tax law isn’t as color-blind as she’d once believed. She takes us into her adopted city of Atlanta, introducing us to families across the economic spectrum whose stories demonstrate how American tax law rewards the preferences and practices of white people while pushing black people further behind. From attending college to getting married to buying a home, black Americans find themselves at a financial disadvantage compared to their white peers. The results are an ever-increasing wealth gap and more black families shut out of the American dream. Solving the problem will require a wholesale rethinking of America’s tax code. But it will also require both black and white Americans to make different choices. This urgent, actionable book points the way forward.
