[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321666-105":59,"doc-detail-321666-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","discrimination-in-mortgage-lending-what-have-we-learned","Discrimination in Mortgage Lending: What Have We Learned?","","Residential mortgage lending patterns in Boston are used to examine whether observed racial disparities in denial rates reflect discrimination. After the HMDA’s 1975 and 1989 expansions, data showed higher denial rates for black and Hispanic applicants than for whites. The Boston Fed study (1992) sought better variables to isolate race effects, yet controversy persisted as critics questioned data quality and the suitability of statistical methods such as logit analysis for detecting discrimination.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/discrimination-in-mortgage-lending-what-have-we-learned/321666/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/discrimination-in-mortgage-lending-what-have-we-learned/321666.png","ImageObject",300,407,{"name":92,"@type":93},"Olivia Brown","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What did the Home Mortgage Disclosure Act (HMDA) aim to do?","Question",{"text":113,"@type":114},"HMDA was designed to improve understanding of the extent of redlining by requiring lenders to disclose information related to residential mortgage lending.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What did the Boston Fed study conclude about racial disparities in mortgage denials?",{"text":118,"@type":114},"It found minority applicants were over 50% more likely to be denied than whites even after accounting for factors related to creditworthiness and property characteristics.",{"name":120,"@type":111,"acceptedAnswer":121},"Why did some economists remain unconvinced after four years of debate?",{"text":122,"@type":114},"Critics questioned the usefulness and reliability of the underlying data and challenged whether logit analysis is appropriate for detecting discrimination in mortgage lending.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},321666,1790230302,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},16904993612988,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","by Stanley D.Longhofer  \nIthas now ben neaty fouryeas sineresearchers at the Federal Reserve Bankof Boston released their groundbreakingstudy on residential mortgage lendingpatterns in that city.Their findingsshowed that black and Hispanic appli-cants were over 50 percent more likely tobe denied a mortgage loan than whites,even after taking into account many fac-tors relevant to the credit-granting deci-sion.In the end,they concluded that thisdisparity was the result of taste-baseddiscrimination(bigotry)on the part oflenders active in the area.  \nIn theintervening years,much efforthas gone into dissecting the Boston re-searchers'analysis,both to replicatetheir results and to explain how such dis-crimination could persist in a market somany view as being highly competitive.With the final version of this paper re-cently published in one of the mostrespected academic journals in the eco-nomics profession,we can now lookback on the debate over the presence ofdiscrimination in mortgage lending tosee what we have learned.²  \n# ■ Origin of the Debate\n\nIn 1975,the Home Mortgage DisclosureAct(HMDA)was passed with the goalof providing a better understanding ofthe extent of redlining—the allegedpractice of denying lcans solely becauseof the location of the property beingmortgaged.At the time,the Act requiredcovered lenders to disclose only the geo-graphic distribution of their residentialmortgage loans.Although these data didshow that substantially fewer mortgage  \n# Discrimination in Mortgage Lending:What Have We Learned?\n\nloans were originated in census tractswith a high proportion of minorities,they did not(and were not intended to)provide evidence of discriminationagainst individual applicants  \nIn 1989,Congress expanded HMDA torequire lenders to report key informationabout each mortgage application re-ceived,including the applicant's income,race,and gender,and the disposition ofthe application.The initial release ofthese datafueled new controversy,sinceblack and Hispanic applicants (but notAsians)were shown to have a muchhigher denial rate than whites.For exam-ple,in 1995(the most recent year forwhich data are available),40.5 percent ofblack and 29.5 percent of Hispanic mort-gage applicants were denied,comparedwith 20.6 percent of white applicants.  \nDespite these provocative disparities,theHMDA data alone are inadequate todraw any meaningful conclusions aboutthe presence of discrimination in thenation's mortgage markets.After all,keyunderwriting factors,including an appli-cant's credit history,debt burden,loan-to-value ratio,liquid assets,and employ-ment history,are not included in the data.As it turms out,most of these factorsarecorrelated with race,making it impossi-ble to determine whether minorities aremore likely to be turned down becausethey are less creditworthy on average orbecause lenders discriminate.³  \n■ The Boston Fed Study  \nIn 1992,researchers at the FederalReserve Bank of Boston(Munnell et al.)  \nAugust 15,1996  \nThe Federal Reserve Bank of Boston'sgroundbreakingstudy on residentialmortgage lending patterns in that city,published in 1992,sparked nationalinterest and led many researchers tolook more closely at the role of race inmortgage underwriting decisions.With the Boston study's recent publi-cation in a respected academic jour-nal,now is a good time to look backon the debate over the presence of dis-crimination in mortgage lending tosee what we have learned.  \nbegan an ambitiouseffort to augment theHMDA data by collecting additionalinformation believed tobe relevant tothe credit-granting decision.Using 1990HMDA data for lending institutions inthe Boston Metropolitan Statistical Area,they worked with examiners,bankers,and other experts to develop a list ofadditional variables that lenders use todetermine an applicant's creditworthi-ness,with the goal of better isolating theeffect of race on an applicant's chance ofbeing approved for a loan.  \nAs expected,their analysis showed thatmuch of the difference in denialr","cbCaivUDjcyflWZB","https://ap.wps.com/l/cbCaivUDjcyflWZB","pdf",1370809,"English","# Origin of the Debate\n# The Boston Fed Study\n# The Critics Respond","[{\"question\":\"What did the Home Mortgage Disclosure Act (HMDA) aim to do?\",\"answer\":\"HMDA was designed to improve understanding of the extent of redlining by requiring lenders to disclose information related to residential mortgage lending.\"},{\"question\":\"What did the Boston Fed study conclude about racial disparities in mortgage denials?\",\"answer\":\"It found minority applicants were over 50% more likely to be denied than whites even after accounting for factors related to creditworthiness and property characteristics.\"},{\"question\":\"Why did some economists remain unconvinced after four years of debate?\",\"answer\":\"Critics questioned the usefulness and reliability of the underlying data and challenged whether logit analysis is appropriate for detecting discrimination in mortgage lending.\"}]","Discrimination in Mortgage Lending: What Have We Learned? | PDF",1789959932,13]