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.