The Facts of Lending Discrimination Cannot Be Argued Away by Examining Default Rates

摘要: Abstract This article argues that interracial differentials in mortgage default rates are an unreliable indicator of racial discrimination markets. First, minority applicants may be approved at nondiscriminatory institutions and thereby end up the pool mortgagors, even though they were first discriminated against other institutions. Second, with no discrimination, expected risk mortgagors overall is probably higher than white overall. Thus, if eliminated some riskier applicants, it not necessarily true rate will lower whites.