Do Mortgage Borrowing Experiences Differ by Race and Ethnicity? Evidence from the National Survey of Mortgage Originations

We find substantial disparities in the likelihood of experiencing processing and closing delays, and in borrowers’ satisfaction with their lender and the overall borrowing experience, controlling for an extensive set of loan, property, and borrower characteristics. Negative experiences may engender a reluctance to reenter the mortgage market in the future. Indeed, we find that experiencing delays at the time of home purchase is associated with a sharp reduction in the likelihood of future refinancing when interest rates drop.