Gender Differences: Mortgage Credit Experience

Abstract

This study examined gender differences in the mortgage credit experience. Home Mortgage Disclosure Data Act (HMDA) data along with Lending Patterns TM generated rates for originations, denials, and fallouts from 2004 to 2013. The gender effect on these rates was examined for statistical differences using the independent t-test, ANOVA, and one sample t-test. Across the country, the results showed no statistical gender effect on origination, denial or fallout rates in the post-housing crisis era. Within the race, this relationship held up, with exclusions. The white females had a lower fallout rate than white males, and Asian females had a higher denial rate than Asian males. Within gender, controlling for race, white females had higher origination and lower denial rates than Black, Hispanic, and Native Americans but were not statistically different from Asian females. Comparing white males to females by race, the results indicated that 53% of the time white males had higher origination, lower denial, or lower fallout rates than females. While 40% of the time, the white male’s mortgage experience was not statistically different from females. Seven percent of the time the white male’s origination rate was lower than white females. In the final analysis, at no time did minority females have a better mortgage experience than white males, but they did 33% of the time experience no statistical difference. Given these points, the applicant’s gender had less of an effect on the mortgage credit experience than the applicant’s race.