Abstract
Access to home mortgage loans has not been a dream equally realized in this country. Since the release of more detailed mortgage lending data, attention has been directed to loan approval differences across race. While denial rates for all races seemed to increase during the 1990s, the gap between minority and non-minority remained the same. This discussion looks at one particular method to identify discrimination at the pre-application stage of the lending process. The use of matched-pair audits is reviewed and a "pure" experimental design is developed. Practical application of the "pure" method is addressed while considering legal and cost concerns that may impair validity. Whether conducting discrimination audits for enforcement or market analysis, it is hoped that the concerns outlined within this discussion are addressed.
Haskin, Edward Arthur (2000). Methodology used in matched-pair audits designed to detect differential treatment in the mortgage lending pre-application process. Master's thesis, Texas A&M University. Available electronically from
https : / /hdl .handle .net /1969 .1 /ETD -TAMU -2000 -THESIS -H372.