Racial Disparities in the US Mortgage Market

Agustin Hurtado and Jung Sakong

AEA Papers and Proceedings, 2024, vol. 114, 201-04

Abstract: We study racial disparities in the US mortgage market. Using new data from Hurtado and Sakong (2024), we present three findings. First, we document access disparities between minority and otherwise-identical White borrowers even within the same bank and with the same loan officer. In contrast, cost disparities are nearly zero. Second, the use of automated underwriting algorithms is associated with smaller access disparities but slightly larger cost disparities. Third, individual factors such as loan officers' race and whether borrowers' race is observed at application do not seem to matter much.

JEL-codes: D63 G21 J15 R31 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1257/pandp.20241128

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