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Article: Mortgage default rates and borrower race
- Article from:
- The Journal of Real Estate Research
- Article date:
- September 1, 1999
- Author:
CopyrightCopyright American Real Estate Society Sep/Oct 1999. Provided by ProQuest LLC. (Hide copyright information)
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Abstract. We estimate a mortgage default model with national data on conventional mortgages that were current from 1986 to 1992. Our analysis confirms the results of previous analyses of Federal Housing Authority mortgages: Black households have higher marginal default rates, controlling for differences in borrower and property characteristics. Further, we do not find that Black borrowers have significantly more home equity. These results do not provide evidence of racial discrimination in mortgage lending and suggest that differences in default costs or transaction costs may explain differences in default rates.
Introduction
This article presents evidence that Black borrowers have higher ...