SOC 201 Chapter Notes - Chapter 14: Surtax, Thomas Perez, Credit Risk
Document Summary
Between 2010 and 2012, u. s. mortgage lenders paid more than half a billion dollars to settle lawsuits brought by the u. s. department of justice on behalf of. Thomas perez, assistant attorney general for the civil rights division of the justice. Department, said that the mortgage brokers where charging what he called a racial surtax: It meant that an african-american wholesale customer in the chicago area in 2007 seeking a ,000 loan paid on average ,937 more in fees than a similarly qualified white applicant. And these fees were not based on any objective factors relating to credit risk. A latino borrower in the miami area in 2007 seeking a ,000 loan paid on average ,538 more than a similarly qualified white applicant. The racial surtax for african americans in miami in 2007 was ,657. Ian ayres and peter siegelman (1995) found more evidence for the differential value of a dollar.
