ABSTRACT
The research and discussions of discrimination in lending are extensive. With nationwide rejection rates of blacks and Hispanics almost three-to-one above that of whites, many people argue that discrimination must exist. Asians are excluded from the research on discrimination because their rejection rates are equal to or lower than those for whites. Redlining is lending discrimination against properties rather than individual applicants. A review of the redlining literature can be found in G. J. Benston. The research on redlining has taken two approaches. The first is the survey method and the second is analysis of statistical data. The survey approach relies on reports of personal experiences of the respondents. Statistical studies of redlining have found little evidence that such discrimination exists. Despite high rates of racial disparities in accept/reject decisions, when factors such as job stability and credit history are taken into account, most studies show little evidence of discrimination.
