Default Rates and Mortgage Discrimination: A View of the ControversyAbstractThis commentary evaluates the debate over interpretation of the empirical findings of Berkovec, Canner, Gabriel, and Hannan (BCGH), which show higher default rates for black FHA borrowers. It argues that BCGH’s critics, who claim that the results cannot be used to infer the absence of mortgage discrimination, are right. However, since the critics’ points are acknowledged in BCGH’s original paper, BCGH are hardly guilty of overstating their case.Default Rates and Mortgage Discrimination: A View of the Controversy (*.pdf, 69 KB)
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