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.
1 - INTRODUCTION .................................... 1
Problem Statement ............................... 2
Research Questions .............................. 3
Study Purpose ................................... 4
Significance of the Study ....................... 4
Definitions of Terms ............................ 4
Delimitations of the Study ...................... 11
Overview of the Remainder of the Study .......... 11
2 û REVIEW OF THE LITERATURE ........................ 12
Systems Theory .................................. 12
Systems Theory and the Mortgage Lending Model ... 24
Mortgage Lending Markets ........................ 31
Past Discrimination in Mortgage Lending ......... 49
Summary ......................................... 55
3 û METHODOLOGY ..................................... 57
Research Design ................................. 57
Research Hypotheses ............................. 58
Variables and Operational Definitions ........... 60...