Since scans are not currently available to screen readers, please contact JSTOR User Support for access. Debates over racial disparities in mortgage lending have intensified recently.Most discussions have focused on the demand side: the characteristics of borrowers, the properties they intend to purchase, and the surrounding neighborhoods.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. Debates over racial disparities in mortgage lending have intensified recently.Most discussions have focused on the demand side: the characteristics of borrowers, the properties they intend to purchase, and the surrounding neighborhoods.Technology-based (“Fin Tech”) lenders increased their market share of U. Faster processing does not come at the cost of higher defaults.Tags: An Analytical Essay Should BeHigh School Homework StatisticsProse Essay MeaningLeadership And Nursing EssayEffects Of Divorce On Kids EssayTopic Ideas For Research Papers
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Seventy-one percent of borrowers surveyed said they worked with a lender that provided an online portal for sharing documents – and a majority reported that they either “like” or “loved” using the portal.
Much of the controversy about whether mortgage lenders discriminate against minorities can be explained in terms of the confusion about how to define discrimination.
Based on the legal definition, careful studies of loan denial rates, such as that done by the Federal Reserve Bank of Boston, represent an appropriate method for testing for discrimination by lenders.
Based on that study, it is quite clear that lenders discriminate.Jon Walker covers broad trends at the intersection of AI and industry for Emerj.He has reported on politics and policy issues for news organizations including National Memo, Massroots, NBC, and is a published science fiction author.Less attention has been paid to the supply side: the characteristics of lending institutions.This article examines how mortgage loan approval rates for African-American applicants in one metropolitan area are affected by three lender characteristics: racial composition of the lender's work force, institution type (commercial bank or thrift), and size (number of employees and number of mortgage loans).Controlling for several borrower characteristics, we find that the approval rate for African Americans increases with the proportion of minority employees, that thrifts approve a higher proportion of applications by African Americans, and that the effects of size depend on the institution type and the measure of size used.We conclude with recommendations for future research and policy initiatives.We find no evidence that Fin Tech lenders target borrowers with low access to finance.Received June 1, 2017; editorial decision November 5, 2018 by Editor Wei Jiang.Although borrowers are showing increasing preference for online channels, the option of connecting with a live human remains important to them.All borrowers surveyed indicated at least some desire to speak with a loan officer in person, especially during the application phase.