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Working Paper
Measuring Fairness in the U.S. Mortgage Market
Black Americans are both substantially more likely to have their mortgage application rejected and substantially more likely to default on their mortgages than White Americans. We take these stark inequalities as a starting point to ask the question: How fair or unfair is the U.S. mortgage market? We show that the answer to this question crucially depends on the definition of fairness. We consider six competing and widely used definitions of fairness and find that they lead to markedly different conclusions. We then combine these six definitions into a series of stylized facts that offer a ...