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| Mortgage Default Rates and Borrower Race Author: Richard Anderson and James VanderHoff Start Page: 279 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. |
