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
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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