Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, October 14, 1993 TAG: 9310140147
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE:
DATELINE: WASHINGTON LENGTH: Medium
However, banking industry spokesmen called it another in a series of deceptive reports that exaggerate the extent of mortgage discrimination.
The new study found that blacks and Hispanics were rejected 2.67 times more often than whites for mortgages last year. That was up from 2.61 in 1991, but down from 2.77 in 1990.
The group that produced the report, the Association of Community Organizations for Reform Now, called on regulators to crack down on banks that show signs of discrimination.
ACORN cited a survey of 120 lending institutions in 23 cities. No Virginia localities were included.
The study was based on data, required under the Home Mortgage Disclosure Act, that measure loan approval rates by applicants' race, gender and income.
Bankers long have argued that the data ignore more important factors taken into consideration when loan applicants are turned down, such as credit history, employment history and debt load.
"We don't think the [data] are an accurate reflection of what the banking industry is doing," said Virginia Stafford of the American Bankers Association.
Federal regulators are expected to produce their own annual report on mortgage loan discrimination in late October or early November.
"Without forceful intervention by Congress, the Department of Justice, HUD and the bank regulatory agencies, the mortgage lending gap will not likely be closed in our lifetimes," the ACORN report said. - Knight-Ridder/Tribune
by CNB