Professor Ross‘s work on mortgage lending was featured in the Washington Post’s Storyline Blog.
Read it here.
Professor Ross’s work finds large differences in the price of credit paid by African-Americans and Hispanics compared to white borrowers that cannot be explained by traditional underwriting variables. These differences primarily arise due to differences in loan pricing across lenders, rather differential treatment of whites and minority borrowers at the same lender. Further, these differences are concentrated among borrowers from locations that have high poverty rates and relatively lower education borrowers