We study the relationship between the labor market for loan officers and access to credit in the residential mortgage … market. Using novel data matching the (near) universe of mortgage applications to loan officers, we find that minorities are … significantly underrepresented among mortgage loan officers. Minority borrowers are less likely to complete mortgage applications …

The current mortgage foreclosure crisis is presumably related to lax lending policies pursued by financial institutions … that extended mortgages to borrowers with questionable credit. These so-called subprime mortgage loans were … regulations, which facilitate mortgage access to minorities. Lenders are profit maximizers and regulations supposedly force them …