To determine whether minority homebuyers receive the same treatment
and information as whites at the pre-application phase of the loan
process, the Urban Institute, under contract with HUD, conducted
a study using the paired testing technique. In the paired tests,
two individuals of different races who were equally qualified in
every way were matched together. Posing as homebuyers, the two then
inquired about the availability and terms for home mortgage loans.
The pilot test results show that in both Los Angeles and Chicago,
African American and Hispanic homebuyers face a significant risk
of receiving less favorable treatment than equally qualified whites
when inquiring about mortgage financing.
Other Things Being Equal: A Paired Testing Study of Mortgage Lending
So just how much do we know about Mortgage
Lending Discrimination in America?