Publication Date

2019

Abstract

This study is the first to empirically demonstrate widespread discrimination across the United States based on perceived sexual orientation sex and race in the mortgage lending process Our analysis of over five million mortgage applications reveals that any FHA loan application filed by samesex male coapplicants is significantly less likely to be approved compared to the white heterosexual baseline holding lending risk constant The most likely explanation for this pattern is sexual orientation based discrimination "” despite the fact that FHA loans are the only type of loan in which discrimination on the basis of sexual orientation is prohibited brbrMoreover we find compelling evidence to support the intersectionality theory According to this theory when sex and race unite a new form of discrimination emerges that cannot be explained by sexism and racism alone The data unequivocally indicates that the race and sex of samesex applicants play a role and result in a unique and previously unobserved pattern This discriminatory pattern plagues every region in the US and it transcends party lines ie it is present in red blue and swing states Furthermore upending conventional wisdom the data reveals that big banks discriminate at the same rate as small banks and lenders in urban environments are as discriminatory as rural lenders Prior studies failed to reveal this phenomenon due to data constraints and design flaws These studies relied on testers posing as applicants and none could investigate how intersectionality influences lending practices brbrDespite the grim results a silver lining exists We find that the pattern of discrimination diminishes or disappears in states and localities that pass antisexual orientation discrimination laws These findings have important and timely implications In 2017 a new bill offering nationwide protection from sexual orientation credit discrimination was introduced The same year has experienced tectonic changes in Title VII jurisprudence Our study can reinvigorate the debate and help policy makers tailor remedies that would correct the discriminatory pattern this study unravels

Download

Share

COinS