ding agencies. In fact, the gap between conventional lenders and the federal agencies widened from 1990 to 1999 within the context of aggregate approval rates. It is only within the context of the two highly publicized policiesùrisk-based pricing and higher mortgage loan limitsùthat the conventional lenders have outperformed the federal agencies.
The major conclusion drawn from the findings of this study is that adherence to risk-based pricing policies and increased mortgage loan limit policies by conventional lenders is more show than real, as the aggregate approval rate among conventional lenders actually declined from 1990 to 1999. Thus, it appears that conventional lenders have found new reasons to reject low- and moderate-income applicants while publicly adhering to the new policies intended to broaden access to mortgage lending for low- and moderate-income applicants.
Overview of the Remainder of the Study 6
Systems Theory and the Mortgage Lending Model 20
Past Discrimination in Mortgage Lending 45
Variables and Operational Definitions 58
Restatement of the Research Questions 62
5 - SUMMARY, DISCUSSION, AND CONCLUSIONS 81
Home ownership is a cornerstone of what is referred to as "the American Dream." Home ownership, however, has become an increasingly difficult objective to attain for low- and moderate-income families, individuals, and households in the contemporary United States. In response to this problem, federal agencies, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), have developed and implemented programs designed to improve access to residential mortgages for "low- and moderate-income families," individuals, and households.
A research study is proposed to investigate the effectiveness of these programs. Throughout the remainder of this study, the term "households" is used to encompass families, individ...