Abstract / Description of output
We show that following the legalization of same-sex marriage across US states, mortgage applications from same-sex borrowers are more likely to be denied relative to a matched sample of different-sex borrowers. Our findings are robust to using a stacked regression design and several approaches to account for compositional changes in the pool of mortgage applicants around same-sex legalization. FinTech lenders, which rely less on human loan officers, experience no change in the denial gap. Our results highlight information frictions between loan officers and same-sex borrowers as one channel for the increased denial gap between same-sex and different-sex applications.
Original language | English |
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Article number | 102315 |
Number of pages | 23 |
Journal | Journal of Corporate Finance |
Volume | 77 |
Early online date | 12 Nov 2022 |
DOIs | |
Publication status | Published - Dec 2022 |
Keywords / Materials (for Non-textual outputs)
- banks
- mortgages
- same-sex marriage