Ethno-racial and Down Payment Disparities in Mortgage Credit Access

Loya, José

doi:10.1007/s12552-022-09378-z

Cited by 5 publications

(5 citation statements)

References 62 publications

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“…Table 1 presents average sociodemographic, loan, neighborhood, and locational characteristics overall and by the applicant type, race and ethnicity, and gender. Because the patterns observed for ethno‐racial groups have been previously documented (Loya 2022a), I focus on gender differences in Table 1. Overall, single applicants are the majority of the mortgage market (63 percent).…”

Section: Descriptive Resultsmentioning

confidence: 99%

“…While recent scholarship highlights disparate treatment of minority borrowers, there remains a relative paucity of intersectional analysis of gender and ethno-racial variation in access to mortgage credit. Previous research using the HMDA dataset has documented the role of race and ethnicity, co-applicants, and segregation in the mortgage market (Faber 2013;Gabriel 2016;Haupert 2020;Loya 2022a;Massey et al 2016). However, these studies have primarily focused on each social dimension separately and have not considered the importance of gender and its intersection with co-applicant status and race and ethnicity.…”

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confidence: 99%

“…While recent scholarship highlights disparate treatment of minority borrowers, there remains a relative paucity of intersectional analysis of gender and ethno‐racial variation in access to mortgage credit. Previous research using the HMDA dataset has documented the role of race and ethnicity, co‐applicants, and segregation in the mortgage market (Faber 2013; Gabriel 2016; Haupert 2020; Loya 2022a; Massey et al. 2016).…”

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confidence: 99%

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Gender and ethno‐racial disparities in access to mortgage credit

Loya

2023

Social Science Quarterly

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There is a long history of gender and ethno‐racial stratification in access to homeownership. Previous research highlights unequal treatment of minorities and women in the mortgage market. However, prior studies focus on single loan applicants when assessing the roles of both gender and race and ethnicity in their analysis. Because of this, it is unclear how mortgage lending disparities differ when considering the intersection of gender and race and ethnicity across single and co‐applicants. This paper draws on annual data from the 2018 and 2019 Home Mortgage Disclosure Act (HMDA) to assess gender and ethno‐racial disparities in loan outcomes. I document two diverging trends. On the one hand, single applicant women generally perform similarly or outperform single applicant men in the mortgage market even across ethno‐racial groups. On the other hand, women‐headed co‐applicants are more likely to experience an adverse loan outcome compared to male‐headed co‐applicants. The gender gap is substantially larger for black and Latino co‐applicants than for white co‐applicants. This is particularly true for black women‐ and Latina‐headed co‐applicants when examining mortgage denials. The results for Asian co‐applicants are mixed, as gender disparities differ across mortgage outcomes. Implications for gender and ethno‐racial stratification are discussed.

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Section: Descriptive Resultsmentioning

confidence: 99%

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confidence: 99%

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confidence: 99%

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Gender and ethno‐racial disparities in access to mortgage credit

Loya

2023

Social Science Quarterly

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“…9,19,24,31,32 However, systemic inequities such as redlining, access to mortgages and insurance, and disparities in immediate vulnerability and longterm resilience, underlie most of these explanations, suggesting that Black populations are likely trapped in unsafe and increasingly worsening circumstances. 33,34,35 Too often migration research and the policy solutions that result focus solely on those who move, without recognizing those who are unable to move. Further research is needed to qualitatively understand the mechanisms behind these results, such that solutions that center around the needs and desires of the affected populations can be crafted.…”

Section: Discussionmentioning

confidence: 99%

Racial disparities in U.S. climate migration

Alverio,

Leblang

2023

Preprint

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Floods are increasingly frequent and severe due to climate change, thereby impacting migration within the United States. Considering that Black and Brown populations are disproportionately exposed to floods, less likely to receive disaster-related government funds, and vulnerable during subsequent displacement, an examination of differences in migration patterns across racial/ethnic groups is critical. The prevailing conjecture is that after floods, Black and Brown populations will migrate while White ones remain in place. We test this hypothesis by examining the effect of floods on migration across all U.S. county-pairs between 2006-2016 and find that this hypothesis is incorrect: generally, after floods Black populations remain in place and White populations migrate. However, this pattern reverses when the Federal Emergency Management Agency provides financial support. Notably, migration by Hispanic and Asian populations is not significantly affected by floods. These results provide the first evidence of racial disparities in climate migration.

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“…If loan outcomes are mixed across ethno-racial groups and by loan purpose, this may suggest that certain elements of the ethno-racial hierarchy may be more flexible, depending on the ethno-racial groups involved and the reason for their refinanced loan (Bonilla-Silva 2004;Charles 2000;Loya 2022c;Massey 2005). The flexibility of the ethno-racial hierarchy may stem from the relative position of Asians and Latinos within the ethno-racial hierarchy across different social dimensions (Cobas, Duany, and Feagin 2009;Kim 1999;Loya 2022a;O'Brien 2008). By investigating the relative position of ethno-racial groups in the refinanced mortgage market, this study seeks to understand the challenges of accessing wealth rather than its creation via homeownership.…”

Section: Wealth and Mortgage Refinance Disparitiesmentioning

confidence: 99%

Ethno-Racial Stratification in the Refinanced Mortgage Market

Loya

2023

Sociology of Race and Ethnicity

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The mortgage industry is a key component of ethno-racial stratification in wealth and homeownership. Previous research demonstrates that unequal treatment of minorities has created inequality in access and exclusion to low-cost mortgage loans in the housing market. While prior studies have documented the disadvantages Black and Latino home seekers face in obtaining a mortgage, these studies have not considered the obstacles that current homeowners face when seeking to refinance their mortgage. This study draws on annual data from the Home Mortgage Disclosure Act (HMDA) from 2018 to 2019 to assess ethno-racial disparities in refinanced mortgage outcomes by loan purpose. I demonstrate that loan rejections and high-cost loans are highest among Black homeowners seeking to refinance their home, especially when trying to make home improvements or cashing-out equity from their home. In general, Asians and Latinos perform in between Whites and Blacks across mortgage outcomes and loan purpose. These trends are particularly true when examining adverse loan outcomes for applicants seeking a cash-out refinance. Implications for ethno-racial stratification and the wealth gap are discussed.

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Ethno-racial and Down Payment Disparities in Mortgage Credit Access

Cited by 5 publications

References 62 publications

Gender and ethno‐racial disparities in access to mortgage credit

Gender and ethno‐racial disparities in access to mortgage credit

Racial disparities in U.S. climate migration

Ethno-Racial Stratification in the Refinanced Mortgage Market

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