Quote:
Originally Posted by Alawen
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I'm not doubling down on the race of anyone. The race of the real estate agent or loan officer is irrelevant. Systemic racism is SYSTEMIC.
Here's another study that shows blacks paying higher interest rates AT ALL INCOME LEVELS: Minorities pay more.
Here's another study showing minorities getting jacked in New York.
Here's an academic paper from an older study.
This one is from Harvard.
Not to be outdone, Yale weighs in.
Do you have enough links yet? While we're at it, do you know that data and analysis are not synonyms? Will it confuse the issue if I also mention that women also receive fewer loan approvals with identical financial information, pay more for their homes, and pay higher interest rates? |
This might have something to do with the fact that blacks and hispanics are far more likely to default on their loans, even when controlling for borrower and property characteristics.
Drawing racial discrimination as an having an ironclad causal relationship with the data is intellectually irresponsible. The science supporting that causation is very murky, and there are many intervening variables.
Bias in Estimates of Discrimination and Default in Mortgage Lending:
http://ideas.repec.org/a/kap/jrefec/...3p197-215.html
What Constitutes Evidence of Discrimination in Lending?
http://ideas.repec.org/a/bla/jfinan/...i2p739-48.html
And you're forgetting that in 2002, President Bush pledged to add 5.5 million minority home-owners, and this was accomplished by
targeted subprime-type deals, zero-down-payment purchases, and other shady shit that was intended to inflate minority home ownership without much regard to their financial soundness down the road. It was designed to get as many minorities into homes as quickly as possible.
So at least some of what appears to be predatory, racist behavior by banks is actually a shitty, hamfisted form of affirmative action, with much of the impetus to perform this kind of lending coming from subsidies by the federal government.