HUD Fair Lending Studies

To determine whether minority homebuyers receive the same treatment and information as whites at the pre-application phase of the loan process, the Urban Institute, under contract with HUD, conducted a study using the paired testing technique. In the paired tests, two individuals of different races who were equally qualified in every way were matched together. Posing as homebuyers, the two then inquired about the availability and terms for home mortgage loans. The pilot test results show that in both Los Angeles and Chicago, African American and Hispanic homebuyers face a significant risk of receiving less favorable treatment than equally qualified whites when inquiring about mortgage financing.

All Other Things Being Equal: A Paired Testing Study of Mortgage Lending Institutions

So just how much do we know about Mortgage Lending Discrimination in America?