Begley, Taylor A.
[Verfasser:in]
;
Gurun, Umit G.
[Sonstige Person, Familie und Körperschaft];
Purnanandam, Amiyatosh
[Sonstige Person, Familie und Körperschaft];
Weagley, Daniel
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 19, 2020 erstellt
Beschreibung:
We find the Small Business Administration's disaster-relief home loan program denies significantly more loans in areas with larger shares of minorities, subprime borrowers, and higher income inequality. We find that risk-insensitive loan pricing -- a feature present in many regulated and government-run lending programs -- is a primary driver of these disparities in access to credit. The differences in denial rates are disproportionately high compared to private-market lending and government-insured risk-sensitive loan pricing programs. Thus, despite ensuring "fair" prices, the use of risk-insensitive pricing may lead to "unfair" access to credit