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.
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).
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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.
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.