Journal Article
Beneath the rhetoric: clarifying the debate on mortgage lending discrimination
Peters, Stephen R.; Longhofer, Stanley D. (1998-10)
The authors' simple model of the mortgage underwriting process provides a framework within which to define discrimination and various notions of the default rate. By providing those with differing views a common framework for discussing their positions, the model clarifies and reconciles some of the most controversial issues in the debate over mortgage discrimination. It also shows how this theoretical framework can help in the design of practical policy responses to this vexing social problem.
Economic Review , Volume 34 , Issue Q IV , Pages 2-13

Working Paper
Protection for whom? creditor conflicts in bankruptcy
Longhofer, Stanley D.; Peters, Stephen R. (2000)
Revised. In this article we provide a rationale for bankruptcy law that is based on the conflicts among creditors that occur when a debtor?s liabilities exceed its assets. In the absence of a bankruptcy law, the private debt-collection remedies that creditors pursue when a debtor is insolvent result in an ad hoc disposal of the debtor?s assets, thereby reducing the aggregate value of creditors? claims. We show that coordination clauses can be used by creditors in their loan agreements that will result in coordination, ex post. Although all creditors would benefit from including these clauses ...
Working Papers (Old Series) , Paper 9909R

Working Paper
Self-selection and discrimination in credit markets
Longhofer, Stanley D.; Peters, Stephen R. (1998)
This paper increases understanding of the causes and consequences of discrimination in credit markets. It develops an underwriting model in which lenders use a simple Bayesian updating process to evaluate applicant creditworthiness. It also models individuals' self-selection behavior to show how market frictions can affect application decisions.
Working Papers (Old Series) , Paper 9809