| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w25943 |
| 来源ID | Working Paper 25943 |
| Consumer-Lending Discrimination in the FinTech Era | |
| Robert Bartlett; Adair Morse; Richard Stanton; Nancy Wallace | |
| 发表日期 | 2019-06-17 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | Discrimination in lending can occur either in face-to-face decisions or in algorithmic scoring. We provide a workable interpretation of the courts’ legitimate-business-necessity defense of statistical discrimination. We then estimate the extent of racial/ethnic discrimination in the largest consumer-lending market using an identification afforded by the pricing of mortgage credit risk by Fannie Mae and Freddie Mac. We find that lenders charge Latinx/African-American borrowers 7.9 and 3.6 basis points more for purchase and refinance mortgages respectively, costing them $765M in aggregate per year in extra interest. FinTech algorithms also discriminate, but 40% less than face-to-face lenders. These results are consistent with both FinTech and non-FinTech lenders extracting monopoly rents in weaker competitive environments or profiling borrowers on low-shopping behavior. Such strategic pricing is not illegal per se, but under the law, it cannot result in discrimination. The lower levels of price discrimination by algorithms suggests that removing face-to-face interactions can reduce discrimination. Further silver linings emerge in the FinTech era: (1) Discrimination is declining; algorithmic lending may have increased competition or encouraged more shopping with the ease of platform applications. (2) We find that 0.74-1.3 million minority applications were rejected between 2009 and 2015 due to discrimination; however, FinTechs do not discriminate in loan approval. |
| 主题 | Financial Economics ; Financial Institutions ; Labor Economics ; Demography and Aging ; Other ; Law and Economics ; Regional and Urban Economics ; Real Estate |
| URL | https://www.nber.org/papers/w25943 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/583617 |
| 推荐引用方式 GB/T 7714 | Robert Bartlett,Adair Morse,Richard Stanton,et al. Consumer-Lending Discrimination in the FinTech Era. 2019. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w25943.pdf（837KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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