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UCL Department of Economics

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Finance seminar presented by Brent Ambrose (Penn State)

04 March 2020, 11:00 am–12:30 pm

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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 House
30 Gordon Street
London
WC1H 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