Abstract: We study links between the labor market for loan officers and access to mortgage credit.
Using novel data matching the (near) universe of mortgage applications to loan officers,
we find that minorities are significantly underrepresented among loan officers. Minority
borrowers are less likely to complete mortgage applications, have completed applications
approved, and to ultimately take-up a loan. These disparities are significantly reduced when
minority borrowers work with minority loan officers. Minority borrowers working with
minority loan officers also have lower default rates. Our results suggest that minority
underrepresentation among loan officers has adverse effects on minority borrowers’ access
to credit.
Presenter's Bio
Organizers: Dan Greenwald (dlg340@stern.nyu.edu) and Roberto Gomez-Cram (rg4811@stern.nyu.edu)
If you wish to participate in this event via zoom, please contact Jarisa Mora.
NYU affiliates interested in attending should also contact Jarisa Mora (jm5673@stern.nyu.edu).
For more information please visit the Stern Wednesday Finance Seminar Website