A Loan At Last: Race and Racism in Mortgage Lending

in (2019) Race in the Marketplace: Crossing Critical Boundaries, eds. Guillaume D. Johnson, Kevin D. Thomas, Anthony Kwame Harrison, Sonya A. Grier, Cham: Switzerland: Palgrave Macmillan, https://doi.org/10.1007/978-3-030-11711-5

24 Pages Posted: 7 Jan 2022

Date Written: March 1, 2019

Abstract

Homeownership is the primary source of wealth accumulation in the U.S., yet homeownership rates for Blacks and Latinx households remain significantly lower than those of White Americans; • Due to cumulative disadvantage, mortgage underwriting models that rely on traditional measures of credit reputation, capacity, and collateral value are a function of past racism and discrimination, and as such, have a negative and disparate impact on Black and Latinx consumers; • Inequities in access to mortgage credit and ultimately to homeownership will persist until more inclusive mortgage lending models are implemented.

Keywords: Homeownership gap; Cumulative disadvantage; Mortgage credit access

Suggested Citation

Perry, Vanessa Gail, A Loan At Last: Race and Racism in Mortgage Lending (March 1, 2019). in (2019) Race in the Marketplace: Crossing Critical Boundaries, eds. Guillaume D. Johnson, Kevin D. Thomas, Anthony Kwame Harrison, Sonya A. Grier, Cham: Switzerland: Palgrave Macmillan, https://doi.org/10.1007/978-3-030-11711-5, Available at SSRN: https://ssrn.com/abstract=3966715 or http://dx.doi.org/10.2139/ssrn.3966715

Vanessa Gail Perry (Contact Author)

George Washington University ( email )

2121 I Street NW
Washington, DC 20052
United States

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