Racial Discrimination in Residential Lending Markets: Why Empirical Researchers Always See It and Economic Theorists Never Do

Nesiba, Reynold F.

doi:10.1080/00213624.1996.11505766

Cited by 19 publications

(13 citation statements)

References 10 publications

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“…Lenders of all types repeatedly told me that it is “just bad business” to discriminate on the basis of skin color if the deals look good. Yet, studies continue to show biased patterns in who gets credit and on what terms (Bates, 1997; Feagin and Nikitah, 1994; Henriques, 2001; Manning, 2000; Nesiba, 1996; Squires and Kim, 1995; Turner and Skidmore, 1999). This study may shed some light on the context in which discrimination occurs during the loan process.…”

Section: Resultsmentioning

confidence: 99%

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers¹

Moulton

2007

Sociological Forum

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This analysis of the U.S. credit industry explores how lenders evaluate people during the loan application process. They use a variety of risk-assessment techniques in conjunction with trust-building mechanisms that I call relational proxies. The relational proxies that lenders rely on are behavioral impressions, reputation information, and financial narratives that explain information on credit reports. Lenders use this subjectively evaluated trust assessment interdependently with standardized financial information to enhance their decisionmaking process. Face-to-face evaluation of potential borrowers is mediated by institutional rules meant to reduce the need for trust. However, for the lenders in this study, a good borrower is always a trustworthy borrower.

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Section: Resultsmentioning

confidence: 99%

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers¹

Moulton

2007

Sociological Forum

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“…Lenders, like any other market actor, can act on the basis of prejudice. Neoclassical economists obscure the central issue by starting with the conclusion: discrimination in lending does not exist [23]. In contrast, empirical studies on mortgage lending discrimination demonstrate that race-and placebased discrimination continue to exist; for example, predominantly white neighborhoods receive three to four times more loans than predominantly minority neighborhoods.…”

Section: Redlining In the United Statesmentioning

confidence: 96%

“…In this debate, a fundamental disagreement exists between empirical researchers, who have evaluated residential mortgage market data, and neoclassical economists, who have theorized about discrimination in credit markets [23]. In virtually every study they conduct, empirical researchers find evidence of place-or race-based discrimination.…”

Section: Redlining In the United Statesmentioning

confidence: 98%

Housing finance as harm

Aalbers

2016

Crime Law Soc Change

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“…Nesiba 1996), there are actors or groups with a privileged situation and those with a disadvantaged situation. The privileged groups not only have more direct 'market power', but also more indirect market power.…”

Section: B Strugglementioning

confidence: 99%

Pressure and suction on housing markets: a critical reply to Priemus

Aalbers

2003

European Journal of Housing Policy

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In a recent issue of this journal Priemus discusses the implications of the shift in the Dutch housing market from suction to pressure. He rightly asserts that the impact made by surpluses on a market differs from that made by shortages, and that this difference will lead to a new generation of housing policies. However, he largely ignores regional differences. Priemus's suggestions for housing policy in regional housing markets with pressure are worth considering and refreshing, but should be taken with much caution in regional housing markets with suction. This paper elaborates on the findings of Priemus and theorizes housing market pressure/suction on a regional level as well as in different segments within the housing market. It also deals with the negative external effects of a more liberalized housing policy for other social, urban and spatial policies. It is argued that Priemus's set of instruments for a new housing policy should be supplemented with pressure/suction-based policies on urban renewal and land policy.Housing market, housing policy, urban renewal, land policy, the Netherlands,

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Racial Discrimination in Residential Lending Markets: Why Empirical Researchers Always See It and Economic Theorists Never Do

Cited by 19 publications

References 10 publications

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers¹

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers¹

Housing finance as harm

Pressure and suction on housing markets: a critical reply to Priemus

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Racial Discrimination in Residential Lending Markets: Why Empirical Researchers Always See It and Economic Theorists Never Do

Cited by 19 publications

References 10 publications

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers1

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers1

Housing finance as harm

Pressure and suction on housing markets: a critical reply to Priemus

Contact Info

Product

Resources

About

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers¹

Divining Value with Relational Proxies: How Moneylenders Balance Risk and Trust in the Quest for Good Borrowers¹