Consumer-Lending Discrimination in the Fintech Era

  title={Consumer-Lending Discrimination in the Fintech Era},
  author={Robert P. Bartlett and Adair Morse and Richard Stanton and Nancy Wallace},
  journal={Comparative Political Economy: Regulation eJournal},
Abstract U.S. fair-lending law prohibits lenders from making credit determinations that disparately affect minority borrowers if those determinations are based on characteristics unrelated to creditworthiness. Using an identification under this rule, we show risk-equivalent Latinx/Black borrowers pay significantly higher interest rates on GSE-securitized and FHA-insured loans, particularly in high-minority-share neighborhoods. We estimate these rate differences cost minority borrowers over $450… 
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