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Author Ambrose, Brent W. ♦ Capone, Charles A.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Processing Default ♦ Unobservable Influence ♦ Bcgh Finding ♦ Significant Unobservable Influence ♦ Postdefault Foreclosure Experience ♦ Bcgh Result ♦ Potential Lending Discrimination ♦ Above-mentioned Critique ♦ Focal Article ♦ Focal Study ♦ Discriminatory Behavior ♦ Methodological Weakness ♦ Major Criticism ♦ Loan Default ♦ Fha Mortgage
Abstract A major criticism leveled against the Berkovec, Canner, Gabriel, and Hannan (BCGH) study of potential lending discrimination is that there are significant unobservable influences that could bias their results against a finding of discriminatory behavior. Two of the three critics maintain that, among these unobservable influences should be a higher incidence of foreclosure for minorities, conditional on loan default, which would explain the BCGH findings. This article examines that question in detail and finds that the postdefault foreclosure experience of minorities is very similar to that of nonminorities, and that lenders tend to give minorities more (rather than less) time to work out their situation before commencing foreclosure. These findings are robust across a number of dimensions, nullifying the above-mentioned critiques of BCGH. However, the article also points out methodological weaknesses that still leave doubts as to the validity of the BCGH results. Critiques of the Focal Study In the focal article of this volume, “Discrimination, Default, and Loss in FHA Mortgage
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article
Publisher Date 1996-01-01