National Fair Lending Laws in America



TABLE OF CONTENT

CHAPTER 01: INTRODUCTION1

Problem Statement1

Introduction1

Background4

Measuring Discrimination4

Residential Segregation5

Challenges and Evidences6

CHAPTER 03: METHODOLOGY13

Research Design13

Secondary and Qualitative Methodology13

Literature Search14

Reliability & Validity of Sources14

Limitation of Research16

Ethical Considerations16

END NOTES18

CHAPTER 01: INTRODUCTION

Problem Statement

Is there any sort of racial discrimination in the market of mortgage lending in America, if it is so, is this issue eroding as the time heals misconception and old prejudices?. There have been no legislative acts which have been successful in fighting against and addressing the issues of discrimination in the market of mortgage lending.

Introduction

Is there any sort of racial discrimination in the market of mortgage lending in America, if it is so, is this issue eroding as the time heals misconception and old prejudices? This is the issue to be addressed and answered in this paper along with the sub and sister issues associated with this particular subject. A few issues in the sub sections will be associated with discrimination definition, discrimination measurements, inclusive of the discrimination statistics and kinds of mortgage loans which are available for the individuals seeking mortgage.

Geographic components are important as a question for defining discrimination of the mortgage loans and the minority neighborhoods redlining. The question is that, is it discriminatory to give away mortgage loan on the basis of neighborhood?. Another subsection that is linked to the requirements of reporting as set forth in the 1975 Home Mortgage Disclosure Act is the ethnicity disappearance reporting over the applications of mortgages.

This paper will be examining, the non reporting ideas have some sort of implications for the Gary Becker's discrimination theory that the mortgage market deregulation and strict reporting requirements will be decreasing discrimination. The last sub issue for examination is finding the differences in the legislative acts and how successful they have been in addressing the discrimination fight for the lending of mortgage loans with respect to the theory of Becker.

CHAPTER 02: LITERATURE REVIEW

This section will firstly describe the racial discrimination from the perspective of mortgage lending. According to the simplest definition, racial discrimination is the unequal management and treatment of the groups or person on the basis of their ethnicity and race. For defining racial discrimination, advocates and scholars always distinguish between the disparate impact and differential treatment, and it creates two different definitions: differential treatment is when there is unequal treatment of the individual because of their race. Disparate impact is when the equal treatment is given to every individual based on the set of procedures and rules but the conclusions of such treatments are constructed in such a way that it favors a certain group of people over others (pp. 39-40).

The scope is broadened by the inclusion of processes and decisions that might not themselves have any sort of racial content but they have some sort of consequences for reinforcing or producing the racial disadvantages. For the assessment, there should be more focus over the institutional processes like how the opportunities are structured on the basis of race, more than the conventional forms of the ...