Lending practices to same-sex borrowers.

ABSTRACT: Using massive US mortgage lending data, we propose a method to infer a borrower's sexual orientation indirectly without a self-identification requirement and demonstrate the method's potential to approximately measure the sexual orientation of the US population at the local level annually over decades. We continue to examine the lending practices to same-sex borrowers and its spillover effects. The persistent results since 1990 reveal that, in contrast with otherwise comparable different-sex loan applicants, the approval rate for same-sex applicants is ∼3-8% lower. Furthermore, conditional on approval, lenders, on average, charge about 0.02-0.2% higher interest to same-sex borrowers, which is equivalent to an annual total of $8.6 million to $86 million in additional interest/fees nationwid

SUBMITTER: Sun H 

PROVIDER: S-EPMC6511003 | biostudies-literature | 2019 May

REPOSITORIES: biostudies-literature