2020/08/04 by Brent W Ambrose, Brent W. Ambrose, James N Conklin +3
Business, Management and Accounting · Economics, Econometrics and Finance · Social Sciences · #Financial Literacy, Pension, Retirement Analysis #Housing Market and Economics #Urban, Neighborhood, and Segregation Studies
paper · doi:10.1093/rfs/hhaa087
openalex publication_date 2020/08/04 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30
Abstract We test for pricing disparities in mortgage contracts using a novel data set that allows us to observe the race and ethnicity of both parties to the loan. We find that minorities pay between 3% and 5% more in fees than similarly qualified whites when obtaining a loan through the same white broker. Critically, we find that the premium paid by minorities depends on the race of the broker. We also examine recent policy changes around broker compensation rules that may not only reduce these price disparities but may also limit access to credit for minorities.