Does Borrower and Broker Race Affect the Cost of Mortgage Credit?

Brent W. Ambrose, James N. Conklin, Luis A. Lopez

Research output: Contribution to journalArticlepeer-review

23 Scopus citations


We test for pricing disparities in mortgage contracts using a novel data set that allows us to observe the race and ethnicity of both parties to the loan. We find that minorities pay between 3% and 5% more in fees than similarly qualified whites when obtaining a loan through the same white broker. Critically, we find that the premium paid by minorities depends on the race of the broker. We also examine recent policy changes around broker compensation rules that may not only reduce these price disparities but may also limit access to credit for minorities.

Original languageEnglish (US)
Pages (from-to)790-826
Number of pages37
JournalReview of Financial Studies
Issue number2
StatePublished - Feb 1 2021

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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