Racial Disparities, Homeownership, and Mortgage Lending in the Post-Great Recession Period: the Case of the Minneapolis-St. Paul Metropolitan Area (original) (raw)
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Mortgage Lending and Race: Is Discrimination Still a Factor?
Environment and Planning A: Economy and Space, 1996
The significance of race in mortgage lending has emerged as a major public policy issue and focus of scholarly research in the United States. In this paper the experiences of black and Latino mortgage loan applicants in a large midwestern metropolitan area are examined by means of a database on the disposition of individual mortgage loan applications that is now available. It is found that, after controlling for income, age of housing, housing value, and occupancy status, black applicants and applicants from predominantly black communities are less likely to have their loan applications approved than are white applicants or applicants from predominantly white areas. Although no disparities were associated with Latino applicants, those applicants from predominantly Latino communities were less likely to be approved than were others. Specific research and policy recommendations are offered to develop a further understanding of the racial implications of the mortgage market and for red...
1997
Numerous studies have documented racial and economic disparities in the home mortgage market. Almost all of these have been done in large urban areas, many of which have long histories of racial conflict and discrimination. Further, little attention has been paid to institutional disparities, i.e. the ways in which mortgage lenders differ among themselves in their community reinvestment performance. In this study, we profile the home mortgage lending of several institutions doing business in the medium-sized urban area of St. Joseph County, Indiana. We find tremendous differences between lenders, suggesting that bank practices and policies exert a great impact on how well low income and minority neighborhoods and individuals are served. Lender characteristics, such as the legal structure of the institution (e.g., commercial bank, credit union, savings and loan), branch locations, and other factors are associated with these disparities. We conclude by suggesting that several heretofo...