Race, redlining, and residential mortgage loan performance

Characterisation of Conditional Foreclosure Likelihood: Significance of Equity, Firm, Number of Co-Borrowers and size to Arm Foreclosure

“…Dependents may have an influence on the probability of foreclosure. As expected, the greater the number of dependents a borrower has, the greater the likelihood of foreclosure (Anderson and VandeHoff, 1999;Berkovec et al, 1994;Hakim and Haddad, 1999).…”

Race, Redlining, and Automobile Insurance Prices

“…although a lower value of Z is required for blacks, the average expected cost is nonetheless higher for blacks because there are relatively few low Z blacks compared with whites.' A related result has been emphasized in analyses of mortgage lending that consider whether racial discrimination implies lower loan default rates for minorities than for nonminorities (e.g.. Berkovec et al 1994;Ferguson and Peters 1995). '* However, tbis possibility has less relevance to the analysis of loss ratios in insurance markets where insurers vary premiums according to expected claim costs and underwriting standards.…”

A multidisciplinary survey on discrimination analysis

“…If discrimination exists, protected groups should have lower default rates than non-protected ones. Berkovec et al (1994) adopt a linear regression model on a dataset of mortgages insured by the U.S. Federal Housing Administration. A higher likelihood of default for black householders was found, which then justifies higher credit denial or interest rates.…”