Article: Fannie Mae review of Boston Fed study confirms loan bias. (Federal National Mortgage Association, Boston Federal Reserve Bank) (includes related article describing three types of mortgage discrimination)

The Fannie Mae Office of Housing Research has confirmed the findings of the 1992 Boston Federal Reserve Bank study that found widespread lending discrimination in the Boston area.

The office set out to determine the validity of the data to improve the effectiveness of community lending initiatives and to address recent attempts to discredit the study.

The Boston Fed was criticized for inaccurately coded data and omitted variables. Although these shortcomings have been of legitimate concern, they do not represent fatal flaws in the research. In fact, closer examination of the data reinforces the Boston Fed's original findings.

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