Download This PaperA 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
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