Question

Research project

Use econometrics analysis (analyze data by regression) to write a research on,

"Do banks discriminate minorities when lending?"

Answer 1

Yes, Many of the banks are discriminating the minority groups in lending loan, or any other properties etc.

The practice followed by the banks, or any of the other lending organizations to backward groups which may be in the basis of race, religion or minorities is termed as mortgage discrimination.

From 1930 onwards, these practices were arised in many of the banks in the United States. This situation is also seen in the present days. There are many evidences regarding the mortage discrimination today. Those banks deny the services regarding financial, residential, or insurance to a certain group of community based upon the race that is mainly by the color as blacks and whites.

The practice of redlining was also uses by the banks. Many minority groups and african americans faced huge difficulties to get loan for their private assets in the redline areas. Due to this severe problem, many of cities in US fall to the condition of urban decay. By the late 1990s many of the minority communities find difficulties in buying home due to the discrimination. Inorder to solve the lending issues regarding the race, an act was passed in 1975 known as Home Mortgage Disclosure Act. This act prevents the banks from delaying the lands or properties ownered by the minority groups.

Thanks!..