Debates over racial disparities in mortgage lending have intensified recently. Most discussions have focused on the demand side: the characteristics of borrowers, the properties they intend to purchase, and the surrounding neighborhoods. Less attention has been paid to the supply side: the characteristics of lending institutions. This article examines how mortgage loan approval rates for African-American applicants in one metropolitan area are affected by three lender characteristics: racial composition of the lender's work force, institution type (commercial bank or thrift), and size (number of employees and number of mortgage loans).

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