Ambrose, Brent W.
[VerfasserIn]
;
Conklin, James
[Sonstige Person, Familie und Körperschaft];
Lopez, Luis A.
[Sonstige Person, Familie und Körperschaft]
Does Borrower and Broker Race Affect the Cost of Mortgage Credit?
Anmerkungen:
In: Review of Financial Studies (Forthcoming)
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 8, 2020 erstellt
Beschreibung:
We test for pricing disparities in mortgage contracts using a novel dataset that allows us to observe the race and ethnicity of both parties to the loan. We find that minorities pay between three and five percent more in fees than similarly qualified whites when obtaining a loan through the same white broker. Critically, we find that the premium paid by minorities depends on the race of the broker. We also examine recent policy changes regarding broker compensation rules that may reduce these price disparities, but may also limit access to credit for minorities