TITLE:
Gender Differences: Mortgage Credit Experience
AUTHORS:
Debby Lindsey-Taliefero
KEYWORDS:
Gender, Mortgage, and Lending Disparities, Fair Lending, Equal Credit Opportunity
JOURNAL NAME:
Modern Economy,
Vol.6 No.9,
September
18,
2015
ABSTRACT: This study examined
gender differences in the mortgage credit experience. Home Mortgage Disclosure
Data Act (HMDA) data along with Lending PatternsTM generated rates for
originations, denials, and fallouts from 2004 to 2013. The gender effect on
these rates was examined for statistical differences using the independent
t-test, ANOVA, and one sample t-test. Across the country, the results showed no
statistical gender effect on origination, denial or fallout rates in the post-housing
crisis era. Within the race, this relationship held up, with exclusions. The
white females had a lower fallout rate than white males, and Asian females had
a higher denial rate than Asian males. Within gender, controlling for race,
white females had higher origination and lower denial rates than Black,
Hispanic, and Native Americans but were not statistically different from Asian
females. Comparing white males to females by race, the results indicated that
53% of the time white males had higher origination, lower denial, or lower
fallout rates than females. While 40% of the time, the white male’s mortgage
experience was not statistically different from females. Seven percent of the
time the white male’s origination rate was lower than white females. In the
final analysis, at no time did minority females have a better mortgage
experience than white males, but they did 33% of the time experience no
statistical difference. Given these points, the applicant’s gender had less of
an effect on the mortgage credit experience than the applicant’s race.