Year Published
2002
Abstract
National data on the disposition of applications for
home mortgages reveal wide disparities in
rejection rates among racial and ethnic groups.
Some have advanced race-based cultural affinity as a
possible explanation for these disparities. The literature has
developed two related, yet distinct, versions of cultural
affinity. In the taste-based form of the theory, lenders have
a preference, or “taste,” for members of their group. In
the common bond formulation, the affinity allows lenders
to better assess the quality of members of their group.
home mortgages reveal wide disparities in
rejection rates among racial and ethnic groups.
Some have advanced race-based cultural affinity as a
possible explanation for these disparities. The literature has
developed two related, yet distinct, versions of cultural
affinity. In the taste-based form of the theory, lenders have
a preference, or “taste,” for members of their group. In
the common bond formulation, the affinity allows lenders
to better assess the quality of members of their group.
Research Category