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Finance seminar presented by Brent Ambrose (Penn State)
04 March 2020, 11:00 am–12:30 pm
Does Borrower and Broker Race Affect the Cost of Mortgage Credit (with James N. Conklin and Luis A. Lopez)
Event Information
Open to
- All
Organiser
-
Ji Hee Yoon
Location
-
Rm 321, Drayton House30 Gordon StreetLondonWC1H 0AX
Abstract: We test for pricing disparities in mortgage contracts using a novel dataset that allows us to observe the race and ethnicity of both parties to the loan. We find that minorities pay more in fees than similarly qualified whites when obtaining a loan through the same white broker. Critically, we find that the premium paid by minorities depends on the race of the broker. We also examine recent policy changes regarding broker compensation rules that may reduce these price disparities, but may also limit access to credit for minorities.
About the Speaker
Brent Ambrose
at Penn State