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Yinger Quoted in Economist Article on Decline in Racial Discrimination in Mortgage Lending

November 28, 2022

The Economist

John M. Yinger

John M. Yinger

For decades the conventional wisdom was that both economic factors and discrimination played a role in lending patterns. But new research by economists at the Federal Reserve Board suggests that such discrimination is less widespread than it was 30 years ago.

Authors of the study found that 17% of black applicants were turned down, compared with 8% of white applicants. But after controlling for the results of automated underwriting systems, which reflect the underwriting guidelines of government-sponsored entities like Fannie Mae and Freddie Mac, and cannot take race into account, this gap was cut in half. 

"I think it’s fair to say that there’s still some discrimination, but it’s not very common," says John Yinger, Trustee Professor of Economics and Public Administration and International Affairs.

Read more in The Economist article, "Racial discrimination in mortgage lending has declined sharply in America."

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