Finally, recall that the discrimination considered here has only been directed toward the mortgage lending decision. However, discrimination in other areas of the economy has significant consequences on the mortgage lending decision. For example, discrimination in the labor market that results in lower income levels and a higher probability of unemployment for minorities would also adversely affect their ability to obtain mortgage credit. Additionally, patterns of geographic segregation caused by discrimination in real estate markets could also affect the availability of mortgage credit to minorities by limiting residential choices. These considerations serve to reinforce the significance and severity of the problem and the necessity of an immediate and successful remedy.
Becker Gary S. 1971. The Economics of Discrimination. 2nd ed. Chicago: University of Chicago Press.
Canner Glenn B., Stuart A. Gabriel, and J. Michael Wooley. 1991. "Race, Default Risk and Mortgage Lending: A Study of the FHA and Conventional Loan Markets." Southern Economic Journal 58: 249-262.
Canner Glenn B., and Dolores S. Smith. 1992. "Expanded HMDA Data on Residential Lending: One Year Later." Federal Reserve Bulletin 78(November): 801-824.
Darity William A., Jr. 1991. "Efficiency Wage Theory: Critical Reflections on the NeoKeynesian Theory of Unemployment and Discrimination." In New Approaches to Economics and Social Analyses of Discrimination, edited by Richard R. Cornwall and Phamindra V. Wunnava. New York: Praeger.
Federal National Mortgage Association (FNMA). 1992. Fannie Mae Guides. Vol. 1. Washington, D.C.: FNMA Selling.
Gabriel Stuart A., and Stuart S. Rosenthal. 1991. "Credit Rationing, Race, and the Mortgage Market." Journal of Urban Economics 29: 371-379.
Gruben William C., Jonathan A. Neuberger, and Ronald H. Schmidt. 1990. "Imperfect Information and the Community Reinvestment Act." Economic Review, Federal Reserve Bank of San Francisco (Summer): 27-46.
Munnell Alicia H., Lynn E. Browne, James McEneaney, and Geoffrey Tootell. 1992. "Mortgage Lending in Boston: Interpreting HMDA Data." Federal Reserve Bank of Boston. Working Paper No. 92-7, October.
Stiglitz Joseph E., and Andrew Weiss. 1987. "Credit Rationing With Many Borrowers." American Economic Review 77(March): 228-231.
-----. 1981. "Credit Rationing in Markets with Imperfect Information." American Economic Review 73(June): 393-410.