To confront lending disparities, Stuart says, we must first recognize that the supposedly rational rules of risk calculation are themselves merely constructions rooted in prejudices.
Gary Dymski, University of California, Riverside:
The unique contributions of Discriminating Risk are twofold. First, the book is the first to really go into the 'social construction' of the logic of appraising housing value in urban environments. The historical approach and rich use of sources provide a revelation for the reader: it brings into three dimensionality the oft-cited fact that 'FHA appraisals were discriminatory.' Second, the book provides substantial insights into actual loan approval processes; the author's interviews yield some rich quotations, which he uses to good advantage.
Bruce Carruthers, Northwestern University:
Stuart takes a simple and powerful idea, that risk and value are both social constructions, and uses it to illuminate an institution that has played a central role in American race relations: the market for home mortgages. His analysis is provocative, insightful, richly documented, and sure to generate debate among scholars and policymakers.
Stuart changes our understanding of the nature of risk, economic rationality, and discrimination. This impressive study has the potential to spur new lines of inquiry into housing markets, housing finance, and the governmental policy that regulates them. Summing Up: Highly recommended.
William J. Collins, Vanderbilt University:
Readers who are interested in the historical interaction of American cities, race, and mortgage finance will find many aspects of Guy Stuart's Discriminating Risk informative and insightful.... It is full of useful historical and contemporary information on the lending process, insightful interviews, and a valuable close reading of the real estate industry's standard operating procedures. I learned a great deal by reading the book, and I recommend it to other scholars with an interest in the history of American housing markets.
Richard Swedberg, Cornell University:
In this fascinating book Guy Stuart takes a fresh new look at the way that the mortgage industry contributes to discrimination. Discriminating Risk is founded on solid empirical research and stands in the best tradition of political economy. It is a must-read for anyone who is interested in economic discrimination and the various social mechanisms through which it is maintained.
Mark Gottdiener, State University of New York at Buffalo:
In his innovative book, with its high quality of writing, conception, and scope, Guy Stuart has created a well-reasoned and compelling argument. His introduction of the idea that there is always an audience to which decisionmakers are accountable sheds new light on the social construction of risk.
