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FIGURE 12.2 Predatory Lending Buying a House: Institutional Discrimination and This figure, based on a national sample, illustrates institutional discrimination. Rejecting the loan applications of minorities and gouging them with higher interest rates are a nationwide practice, not the acts of a rogue banker here or there. Because the discrimination is part of the banking system, it is also called systemic discrimination. 45% 43 Whites 40% Latinos 36 35% African Americans 30 30 30% 25 26 25% 20% 15 15% 14 11 10% 5% These Applicants Were Denied a Mortgage Applicants whose income was below the median income Applicants whose income was above the median income These Applicants Were Charged Higher Interest (given subprime loans) Applicants who have 100% to 120% of median income Source: By the author. Based on Kochbar and Gonzalez-Barrera 2009. Based on Figure 12.2, "Buying a House: Institutional 2) Discrimination in Mortgages," how do the percentage of mortgage loan denials change as the applicants' median incomes increase? How do the denials remain the same?

FIGURE 12.2 Predatory Lending Buying a House: Institutional Discrimination and This figure, based on a national sample, illustrates institutional discrimination. Rejecting the loan applications of minorities and gouging them with higher interest rates are a nationwide practice, not the acts of a rogue banker here or there. Because the discrimination is part of the banking system, it is also called systemic discrimination. 45% 43 Whites 40% Latinos 36 35% African Americans 30 30 30% 25 26 25% 20% 15 15% 14 11 10% 5% These Applicants Were Denied a Mortgage Applicants whose income was below the median income Applicants whose income was above the median income These Applicants Were Charged Higher Interest (given subprime loans) Applicants who have 100% to 120% of median income Source: By the author. Based on Kochbar and Gonzalez-Barrera 2009. Based on Figure 12.2, "Buying a House: Institutional 2) Discrimination in Mortgages," how do the percentage of mortgage loan denials change as the applicants' median incomes increase? How do the denials remain the same?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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FIGURE 12.2 Buying a House: Institutional Discrimination and Predatory Lending This figure, based on a national sample, illustrates institutional discrimination. Rejecting the loan applications of minorities and gouging them with higher interest rates are a nationwide practice, not the acts of a rogue banker here or there. Because the discrimination is part of the banking system, it is also called systemic discrimination. 45% 43 Whites 40% Latinos 36 35% African Americans 30 30 30% 26 25% 20% 15 15% 11 10% 5% These Applicants Were Denied a Mortgage Applicants whose income was below the median income Applicants whose income was above the median income These Applicants Were Charged Higher Interest (given subprime loans) Applicants who have 100% to 120% of median income Source: By the author. Based on Kochbar and Gonzalez-Barrera 2009. Based on Figure 12.2, ing a House: Institutional 2) Discrimination in Mortgages," how do the percentage of mortgage loan denials change as the applicants' median incomes increase? How do the denials remain the same? 25
Transcribed Image Text:FIGURE 12.2 Buying a House: Institutional Discrimination and Predatory Lending This figure, based on a national sample, illustrates institutional discrimination. Rejecting the loan applications of minorities and gouging them with higher interest rates are a nationwide practice, not the acts of a rogue banker here or there. Because the discrimination is part of the banking system, it is also called systemic discrimination. 45% 43 Whites 40% Latinos 36 35% African Americans 30 30 30% 26 25% 20% 15 15% 11 10% 5% These Applicants Were Denied a Mortgage Applicants whose income was below the median income Applicants whose income was above the median income These Applicants Were Charged Higher Interest (given subprime loans) Applicants who have 100% to 120% of median income Source: By the author. Based on Kochbar and Gonzalez-Barrera 2009. Based on Figure 12.2, ing a House: Institutional 2) Discrimination in Mortgages," how do the percentage of mortgage loan denials change as the applicants' median incomes increase? How do the denials remain the same? 25
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