Historical Home loan Credit Risk

Historical mortgage financing exposure is actually measured having fun with HOLC community risk grades: (A) best (green), (B) still prominent (blue), (C) declining (yellow), and (D) hazardous (red).

Latest Financial Credit Prejudice

Present day racial, cultural, and you may assets place-centered prejudice inside the mortgage lending patterns have been projected for every HOLC people having fun with Mortgage loan Disclosure Act (HMDA) study inside 20072013. g., denial), and location (census region) of the property. Racial and you will ethnic bias methods try estimated since chances proportion from denial from a mortgage software from a black colored (or Hispanic) applicant than the a light candidate using an excellent logistic regression design-mainly based, spatial selection method once the has been demonstrated regarding the books (Beyer mais aussi al. 2016). Activities manage into applicant’s sex, plus the proportion of your own amount borrowed to your applicant’s terrible annual money. Venue bias try projected due to the fact chances ratio out of assertion away from a home loan application for local qualities (in the spatial filter out), as opposed to the MSA total, adjusting towards the applicant’s sex additionally the financing so you’re able to income ratio.