The Effect of Minority Bank Ownership on Minority Credit

Racial Disparities in the U.S. Mortgage Market

“…This study employs unique data assembled by Hurtado and Sakong (2024) to investigate the extent and potential drivers of racial disparities in the U.S. mortgage market. These data allow us to compare mortgage outcomes for minority and otherwise identical White borrowers, with loans with the same characteristics, and with the same bank, loan officer, and underwriting method.…”

“…Our approach and findings represent another step toward understanding the factors driving disparities and discriminatory forces in the mortgage market. Recent research suggests structural or organizational factors may also play a role and have been overlooked by previous studies (Hurtado and Sakong, 2024)…”

“…We rely on data developed in Hurtado and Sakong (2024), a study that investigates the economics of minority bank ownership. These data incorporate several innovations, which range from new data sources such as LinkedIn headshots to new tools such as balanced facial attribute recognition used to predict loan officers' race.…”

“…These data incorporate several innovations, which range from new data sources such as LinkedIn headshots to new tools such as balanced facial attribute recognition used to predict loan officers' race. We refer the reader to Hurtado and Sakong (2024) for more details on the data.…”