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Cross-lender variation in home mortgage lending

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

Abstract

An evaluation of the feasibility of using Home Mortgage Disclosure Act (HMDA) data to form quantitative measures of fair lending for use in enforcement. The authors find that cross-lender differences in minority and low-income originations primarily reflect differences in application rates, not in approval rates, and that most of the variation in lender behavior cannot be attributed to variance in applicant characteristics reported in the HMDA data or to differences in the geographic markets served by the lenders.

Suggested Citation

  • Robert B. Avery & Patricia E. Beeson & Mark S. Sniderman, 1994. "Cross-lender variation in home mortgage lending," Economic Review, Federal Reserve Bank of Cleveland, vol. 30(Q IV), pages 12-29.
    • Handle: RePEc:fip:fedcer:y:1994:i:qiv:p:12-29:n:v.30no.4
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    References listed on IDEAS

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    1. 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.
    2. 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. Douglas Evanoff & Lewis Segal, 1997. "Strategic Responses to Bank Regulation: Evidence From HMDA Data," Journal of Financial Services Research, Springer;Western Finance Association, vol. 11(1), pages 69-93, February.
    2. Harrison, David M., 2001. "The Importance of Lender Heterogeneity in Mortgage Lending," Journal of Urban Economics, Elsevier, vol. 49(2), pages 285-309, March.
    3. Stanley D. Longhofer & Stephen R. Peters, 1998. "Self-selection and discrimination in credit markets," Working Papers (Old Series) 9809, Federal Reserve Bank of Cleveland.
    4. Dawkins, Mark C., 2002. "Simultaneity bias in mortgage lending: A test of simultaneous equations models on bank-specific data," Journal of Banking & Finance, Elsevier, vol. 26(8), pages 1593-1613, August.

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