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Accounting for racial differences in housing credit markets

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  • Robert B. Avery
  • Patricia E. Beeson
  • Mark S. Sniderman

Abstract

A documentation of racial and neighborhood differences in home mortgage denial rates using data collected under the Home Mortgage Disclosure Act, exploring the extent to which objective lending criteria are responsible for observed differences. The authors find persistent variations in denial rates between white and minority applicants, but emphasize that the HMDA data do not contain enough relevant information to draw any firm conclusions regarding causation.

Suggested Citation

  • Robert B. Avery & Patricia E. Beeson & Mark S. Sniderman, 1993. "Accounting for racial differences in housing credit markets," Working Papers (Old Series) 9310, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9310
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    References listed on IDEAS

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    1. Lang William W. & Nakamura Leonard I., 1993. "A Model of Redlining," Journal of Urban Economics, Elsevier, vol. 33(2), pages 223-234, March.
    2. Duca John V. & Rosenthal Stuart S., 1993. "Borrowing Constraints, Household Debt, and Racial Discrimination in Loan Markets," Journal of Financial Intermediation, Elsevier, vol. 3(1), pages 77-103, October.
    3. Stuart A. Gabriel & Stuart S. Rosenthal, 1991. "Credit rationing, race, and the mortgage market," Journal of Urban Economics, Elsevier, vol. 29(3), pages 371-379, May.
    4. Paul S. Calem, 1992. "The Delaware Valley Mortgage Plan: an analysis using HMDA data," Working Papers 92-3, Federal Reserve Bank of Philadelphia.
    5. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, vol. 86(1), pages 25-53, March.
    6. Glenn B. Canner & Dolores S. Smith, 1991. "Home Mortgage Disclosure Act: expanded data on residential lending," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Nov, pages 859-881.
    7. Glenn B. Canner & Charles A. Luckett, 1991. "Payment of household debts," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Apr, pages 218-229.
    8. Robert B. Avery & Patricia E. Beeson & Mark S. Sniderman, 1992. "Cross-lender variation in home mortgage lending," Working Papers (Old Series) 9219, Federal Reserve Bank of Cleveland.
    9. Robert B. Avery, 1989. "Making judgments about mortgage lending patterns," Economic Commentary, Federal Reserve Bank of Cleveland, issue Dec.
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    Cited by:

    1. Wenli Li & Ishani Tewari & Michelle J. White, 2019. "Using Bankruptcy to Reduce Foreclosures: Does Strip-Down of Mortgages Affect the Mortgage Market?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 55(1), pages 59-87, February.
    2. Robert B. Avery & Patricia E. Beeson & Mark S. Sniderman, 1994. "Underserved mortgage markets: evidence from HMDA data," Working Papers (Old Series) 9421, Federal Reserve Bank of Cleveland.
    3. Jeffrey M. Lacker, 1995. "Neighborhoods and banking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-38.
    4. Robert B. Avery & Patricia E. Beeson & Mark S. Sniderman, 1994. "Posted rates as signals in mortgage lending markets," Working Papers (Old Series) 9419, Federal Reserve Bank of Cleveland.

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