How does under-representation of minorities matter when getting a loan for a home? 鈥淎rguably, the residential mortgage market is probably the most important credit market for households in the U.S.,鈥 Finance Professor Ruidi Huang of 天美传媒 Cox notes about research, forthcoming in the Journal of Finance. Mortgage lending in the U.S. has traditionally been viewed as a place where hard information dominates. The study suggests that minority loan officers may use more soft information signals about minority borrowers, which makes a difference.
September 23, 2024