Major
Mathematics
Anticipated Graduation Year
2022
Access Type
Open Access
Abstract
Comparing demographic census tracts data to mortgage loan amounts, the racial divides today are the same as redlining divides from 1934. This is significant, as property is the main vehicle for generational transfer of wealth. Recently, WBEZ wrote an article entitled “Where Banks Don’t Lend.” The article studied total loan size per census tract. What are the most important factors affecting loans? In this project, we examined freely-available mortgage data with a more robust mathematical lens. We discovered that loan acceptance/denial is correlated with redlining. Although some banks are doing better, systemic racism is codified in the mortgage industry.
Faculty Mentors & Instructors
Aaron Lauve, Associate Professor and Graduate Program Director for Mathematics, Department of Mathematics & Statistics
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Neighborhood Majority Race's Impact on Mortgage Loans
Comparing demographic census tracts data to mortgage loan amounts, the racial divides today are the same as redlining divides from 1934. This is significant, as property is the main vehicle for generational transfer of wealth. Recently, WBEZ wrote an article entitled “Where Banks Don’t Lend.” The article studied total loan size per census tract. What are the most important factors affecting loans? In this project, we examined freely-available mortgage data with a more robust mathematical lens. We discovered that loan acceptance/denial is correlated with redlining. Although some banks are doing better, systemic racism is codified in the mortgage industry.