A Case Study of Mortgage Refinancing Discrimination: African American Intergenerational Wealth*

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Abstract
A case study approach is taken to examine differences between African Americans and white Americans in their respective approval/denial rates for home mortgage refinancing. Data from a regional banking institution is used for the case analysis. These data indicate that African Americans are significantly more likely to be turned down for mortgage refinancing than their white American counterparts. We suggest that refinance discri‐mination is one contributing factor to the continuing wealth or net worth gaps between blacks and whites. The inability to access the potential capital resident in one's home impedes the ability of African Americans to transmit advantage from one generation to the next.