Racial Dispersion in Consumer Credit Interest Rates.

The article focuses on the disparities of the interest rates of a variety of consumer loan using a reduced-form framework. It says that a statistically significant degree of unexplained racial dispersion even after attempting to control for default risk is exhibited by the interest rates on first and second mortgages, automobile loans, and other consumer loans. It adds that racial dispersion in rates is less robust and generally appears to fall off for loans which originated after 1995.