We compare mortgage lenders’ credit decisions to algorithmic recommendations – on the same set of loan applications – from widely used Automated Underwriting Systems (AUS) to assess discrimination. In 2018-19, lenders were more likely to deny minority applicants than non-Hispanic white...

This article presents findings from the HMDA data through 2016. The number of mortgage originations in 2016 rose 13 percent from 2015. Black and Hispanic white borrowers increased their share of home-purchase loans for the third straight year. The share of mortgages originated by nondepository,...

We assess racial discrimination in mortgage approvals using new data on mortgage applications. Minority applicants tend to have significantly lower credit scores, higher leverage, and are less likely than white applicants to receive algorithmic approval from race-blind government automated...

The Community Reinvestment Act (CRA) encourages banks to lend to low and moderate income individuals. Following the subprime crisis, the CRA was accused of having promoted risky lending. This paper estimates the effect of the CRA on mortgage lending, exploiting variation in the set of banks...

Data collected under the Home Mortgage Disclosure Act (HMDA) reveal that the largest banks have significantly reduced their share of mortgage lending to low- and moderate-income (LMI) households in recent years