The Impact of Minority Representation at Mortgage Lenders

W Frame, Ruidi Huang, Erik J. Mayer and Adi Sunderam

No 30125, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study links between the labor market for loan officers and access to mortgage credit. Using novel data matching the (near) universe of mortgage applications to loan officers, we find that minorities are significantly underrepresented among loan officers. Minority borrowers are less likely to complete mortgage applications, have completed applications approved, and to ultimately take-up a loan. These disparities are significantly reduced when minority borrowers work with minority loan officers. Minority borrowers working with minority loan officers also have lower default rates. Our results suggest that minority underrepresentation among loan officers has adverse effects on minority borrowers’ access to credit.

JEL-codes: G21 G51 J15 (search for similar items in EconPapers)
Date: 2022-06
New Economics Papers: this item is included in nep-ban, nep-dem, nep-lab and nep-ure
Note: CF
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Citations: View citations in EconPapers (7)

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Working Paper: The Impact of Minority Representation at Mortgage Lenders (2022)
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