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Evidence and Actions on Mortgage Market Disparities: Research, Fair Lending Enforcement and Consumer Protection

Author

Listed:
  • Marsha J. Courchane

    (Charles River Associates)

  • Stephen L. Ross

    (University of Connecticut)

Abstract

In this article, we present overviews of the research on discrimination in mortgage underwriting and pricing, the experiences of minority borrowers prior to and during the financial crisis and federal efforts to mitigate foreclosures during the crisis. We next discuss the history of legal cases alleging disparate treatment of minority borrowers, and recent cases alleging disparate impact in the wake of the Supreme Court's “Inclusive Communities†decision. Using these discussions as a background, we discuss and examine mortgage regulations issued by the Consumer Finance Protection Bureau following the financial crisis, describe recent developments in the FinTech industry discussing their implications for fair lending policy and minority borrowers more generally, and finally draw conclusions and make recommendations for improving the mortgage market outcomes of minority borrowers and increasing minority borrowers' access to credit.

Suggested Citation

  • Marsha J. Courchane & Stephen L. Ross, 2018. "Evidence and Actions on Mortgage Market Disparities: Research, Fair Lending Enforcement and Consumer Protection," Working Papers 2018-052, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2018-052
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Fair Housing Act; mortgage discrimination; HMDA; risk-based pricing; financial crises; mortgage foreclosure; subprime lending; HAMP; legal settlements; disparate impact; inclusive communities; Consumer Finance Protection Bureau; FinTech;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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