Title

Discrimination in Mortgage Lending: Evidence from a Correspondence Experiment

Document Type

Article

Language

eng

Format of Original

18 p.

Publication Date

3-2016

Publisher

Elsevier

Source Publication

Journal of Urban Economics

Source ISSN

0094-1190

Abstract

We design and implement an experimental test for differential response by mortgage loan originators (MLOs) to requests for information about loans. Our e-mail correspondence experiment is designed to analyze differential treatment by client race and credit score. Our results show net discrimination by 1.8% of MLOs through non-response. We also find that MLOs offer more details about loans and are more likely to send follow up correspondence to whites. The effect of being African American on MLO response is equivalent to the effect of having a credit score that is 71 points lower.

Comments

Journal of Urban Economics, Vol. 92 (March 2016): 48-65. DOI.