When the United States reported the mortgage default data, social scientists discovered that new minority homeowners were being evicted due to defaults at much higher rates than white homeowners. More high-interest mortgages were sold to working-class, first-time home buyers. The impact of the defaults on minority homeowners is:

Question

Quizplus · Accepted Answer

The higher eviction rates for minority homeowners due to mortgage defaults are a latent effect of lending practices. This suggests that lending practices may have been discriminatory towards minority homeowners or that they were offered worse mortgage terms compared to white homeowners. This is a latent effect of lending practices because the high-interest mortgages were sold to working-class, first-time home buyers, which tended to be more minorities, and the impact of the defaults was not immediately apparent until the data was analyzed. In other words, it was not a direct or intended effect of the lending practices but rather an unintended consequence.

When the United States Reported the Mortgage Default Data, Social