This paper examines racial and ethnic differences in high cost mortgage lending in seven diverse metropolitan areas from 2004-2007. Even after controlling for credit score and other key risk factors, African-American and Hispanic home buyers are 105 and 78 percent more likely to have high cost...

In 2012, the Department of Housing and Urban Development launched the fourth major nationwide housing discrimination study with the goal of measuring housing discrimination in rental and owner-occupied housing for blacks, Hispanics and Asians. The substantial declines in discrimination observed...

Recent research suggests that loss aversion may arise from anchoring or inattention, consistent with bounded rationality. Focal point bias (focus on round numbers or left digits) represents a well-documented, bounded rationality driven behavioral bias. We estimate a strong conditional...