Does marriage equality promote credit access? Evidence from same-sex marriage laws

Jens Hagendorff, Duc Duy Nguyen and Vathunyoo Sila

Journal of Corporate Finance, 2022, vol. 77, issue C

Abstract: We show that following the legalization of same-sex marriage across US states, mortgage applications from same-sex borrowers are more likely to be denied relative to a matched sample of different-sex borrowers. Our findings are robust to using a stacked regression design and several approaches to account for compositional changes in the pool of mortgage applicants around same-sex legalization. FinTech lenders, which rely less on human loan officers, experience no change in the denial gap. Our results highlight information frictions between loan officers and same-sex borrowers as one channel for the increased denial gap between same-sex and different-sex applications.

Keywords: Banks; Mortgages; Same-sex marriage (search for similar items in EconPapers)
JEL-codes: G21 J12 J15 K36 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:77:y:2022:i:c:s0929119922001584

DOI: 10.1016/j.jcorpfin.2022.102315

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