Comparing Loan Performance Between Races as a Test for DiscriminationAbstractThis critique argues that analysis of loan performance data cannot provide a clear indicator of prejudice-motivated or profit-motivated mortgage market discrimination. It evaluates the Berkovec, Canner, Gabriel, and Hannan model by considering various possible assumptions that can be made by the lender and by the researcher regarding the dimensions of a loan applicant’s creditworthiness.Comparing Loan Performance Between Races as a Test for Discrimination (*.pdf, 75 KB)
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