Becker Friedman Institute

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Evidence and Actions on Mortgage Market Disparities: Research, Fair Lending Enforcement and Consumer Protection

In this article, we present overviews of the research on discrimination in mortgage underwriting and pricing, the experiences of minority borrowers prior to and during the financial crisis and federal efforts to mitigate foreclosures during the crisis. We next discuss the history of legal cases alleging disparate treatment of minority borrowers, and recent cases alleging disparate impact in the wake of the Supreme Court’s “Inclusive Communities” decision. Using these discussions as a background, we discuss and examine mortgage regulations issued by the Consumer Finance Protection Bureau following the financial crisis, describe recent developments in the FinTech industry discussing their implications for fair lending policy and minority borrowers more generally, and finally draw conclusions and make recommendations for improving the mortgage market outcomes of minority borrowers and increasing minority borrowers’ access to credit.

Authors: 
Marsha J. Courchane, Charles River Associates
Stephen L. Ross, University of Connecticut
Publication Date: 
August, 2018
Publication Status: 
Document Number: 
2018-052
File Description: 
First version, August, 2018