"The color of money" revisited: Racial lending patterns in Atlanta's neighborhoods

In 1988, the Atlanta Journal-Constitution published "The Color of Money," a n influential series examining mortgage redlining in Atlanta. The articles documented wide lending disparities between white and black neighborhoods o f similar income levels. Given sweeping changes in housing finance since 19 88, we seek to determine whether Atlanta's racial geographic disparities in mortgage lending have changed. Analysis of 1992 to 1996 Home Mortgage Disclosure Act data reveals slight i mprovement. Atlanta's depository lenders made 4.2 times as many conventiona l home purchase loans per owner-occupied unit to middle-income white neighb orhoods as they did to middle-income black neighborhoods; a decade earlier, this ratio was 5.2. Nondepositories post lower ratios, particularly for Fe deral Housing Administration-insured loans, but this market segment raises concerns because of potential abuses. By the indicator of most enduring the oretical and policy interest-conventional home purchase lending by deposito ries-the patterns that aroused concern a decade ago are still evident today .