Discrimination in Mortgage Lending : A Critical Review of the Literature

This paper surveys the literature on racial disparities in mortgage lending over the past twenty five years, including a discussion of the theoretical models, empirical methods, and data used to test for discrimination. Weaknesses in the models, methods, and data typically used together with results from simulation studies cast serious doubt on many of the claims made about discrimination in mortgage lending markets. In its conclusion the paper offers some proposals for new directions in research to better understand racial differences in mortgage usage