IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v86y1996i1p25-53.html
   My bibliography  Save this article

Mortgage Lending in Boston: Interpreting HMDA Data

Author

Listed:
  • Munnell, Alicia H.
  • Geoffrey M. B. Tootell
  • Lynn E. Browne
  • James McEneaney

Abstract

The Home Mortgage Disclosure Act was enacted to monitor minority and low-income access to the mortgage market. The data collected for this purpose show that minorities are more than twice as likely to be denied a mortgage as whites. Yet variables correlated with both race and creditworthiness were omitted from these data, making any conclusion about race's role in mortgage lending impossible. The Federal Reserve Bank of Boston collected additional variables important to the mortgage lending decision and found that race continued to play an important, though significantly diminished, role in the decision to grant a mortgage. Copyright 1996 by American Economic Association.

Suggested Citation

  • 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.
  • Handle: RePEc:aea:aecrev:v:86:y:1996:i:1:p:25-53
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Glenn B. Canner, 1982. "Redlining : research and federal legislative response," Staff Studies 121, Board of Governors of the Federal Reserve System (U.S.).
    3. Black, Harold & Schweitzer, Robert L & Mandell, Lewis, 1978. "Discrimination in Mortgage Lending," American Economic Review, American Economic Association, vol. 68(2), pages 186-191, May.
    4. Galster, George C, 1977. "A Bid-Rent Analysis of Housing Market Discrimination," American Economic Review, American Economic Association, vol. 67(2), pages 144-155, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Douglas D. Evanoff & Lewis M. Segal, 1996. "CRA and fair lending regulations: resulting trends in mortgage lending," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 20(Nov), pages 19-46.
    2. Song Han, 2001. "On the Economics of Discrimination in Credit Markets," Finance and Economics Discussion Series 2002-02, Board of Governors of the Federal Reserve System (U.S.).
    3. Jeffrey M. Lacker, 1995. "Neighborhoods and banking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-38.
    4. Wheeler, Christopher H. & Olson, Luke M., 2015. "Racial differences in mortgage denials over the housing cycle: Evidence from U.S. metropolitan areas," Journal of Housing Economics, Elsevier, vol. 30(C), pages 33-49.
    5. Nolan Kopkin, 2018. "The conditional spatial correlations between racial prejudice and racial disparities in the market for home loans," Urban Studies, Urban Studies Journal Limited, vol. 55(16), pages 3596-3614, December.
    6. H. Naci Mocan & W. James Smith & William Tevebaugh, 1997. "Credit rationing, deregulation and race in mortgage lending in the United States: 1960-90," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1337-1342.
    7. Robert B. Avery & Patricia E. Beeson & Mark S. Sniderman, 1996. "Neighborhood information and home mortgage lending," Working Papers (Old Series) 9620, Federal Reserve Bank of Cleveland.
    8. Hero Ashman & Seth Neumuller, 2020. "Can Income Differences Explain the Racial Wealth Gap: A Quantitative Analysis," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 35, pages 220-239, January.
    9. Rapaport, Carol, 1997. "Housing Demand and Community Choice: An Empirical Analysis," Journal of Urban Economics, Elsevier, vol. 42(2), pages 243-260, September.
    10. George H. Lentz & Ko Wang, 1998. "Residential Appraisal and the Lending Process: A Survey of Issues," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 11-40.
    11. Yannick L'Horty & Mathieu Bunel & Pascale Petit, 2019. "Testing for redlining in the labour market," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(2), pages 153-173, April.
    12. H. Young Baek & David D. Cho, 2023. "Are Minorities Still Paying Higher Mortgage Interest Rates?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 29(1), pages 31-47, May.
    13. Wendy Edelberg, 2007. "Racial dispersion in consumer credit interest rates," Finance and Economics Discussion Series 2007-28, Board of Governors of the Federal Reserve System (U.S.).
    14. Gabriel, Stuart A. & Rosenthal, Stuart S., 2005. "Homeownership in the 1980s and 1990s: aggregate trends and racial gaps," Journal of Urban Economics, Elsevier, vol. 57(1), pages 101-127, January.
    15. Song Han, 2004. "Discrimination in Lending: Theory and Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 29(1), pages 5-46, July.
    16. Black, Harold A. & Boehm, Thomas P. & DeGennaro, Ramon P., 2003. "Is there discrimination in mortgage pricing? The case of overages," Journal of Banking & Finance, Elsevier, vol. 27(6), pages 1139-1165, June.
    17. Song Han, 2011. "Creditor Learning and Discrimination in Lending," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 1-27, October.
    18. James B. Kau & Lu Fang & Henry J. Munneke, 2019. "An Unintended Consequence of Mortgage Financing Regulation – a Racial Disparity," The Journal of Real Estate Finance and Economics, Springer, vol. 59(4), pages 549-588, November.
    19. 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.
    20. Emily Blank & Padma Venkatachalam & Lawrence McNeil & Rodney Green, 2005. "Racial discrimination in mortgage lending in Washington, D.C.: A mixed methods approach," The Review of Black Political Economy, Springer;National Economic Association, vol. 33(2), pages 9-30, December.

    More about this item

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Mortgage Lending in Boston: Interpreting HMDA Data (AER 1996) in ReplicationWiki

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:86:y:1996:i:1:p:25-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.