Vanessa Gail Perry (George Washington University) has posted 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) on SSRN. Here is the 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.