Gender Equality in Mortgage Lending
Real Estate Economics, DOI10.1111/1540-6229.12198, Forthcoming
Posted: 19 Jun 2020
Date Written: April 11, 2017
Using a sample of 30-year fixed-rate subprime mortgage loans, this article empirically examines whether gender inequality exists in the mortgage market, specifically whether a borrower’s gender affects the loan contract rate charged, beyond the impact of the borrower’s probability of default and prepayment. The results, based on a competing-risks loan hazard model, reveal that borrowers of different genders have different loan termination patterns. After controlling for the probability of a borrower defaulting or prepaying, female borrowers pay higher contract rates in the subprime mortgage market over the study period.
Keywords: Gender equality, Mortgage, Default, Prepayment
JEL Classification: G21, J16, R20
Suggested Citation: Suggested Citation