BankAmerica HMDA data shows increased minority, low-income lending nationwide.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 29, 1996--BankAmerica increased the number of loans it made nationwide to low-income and minority customers in 1995 by 35 percent over the previous year.

Loans made to African Americans increased by the largest percentage among minority groups -- climbing 56 percent nationwide during the year.

According to data collected under the federal Home Mortgage Disclosure Act (HMDA), BankAmerica made 64,655 loans to low-income and minority customers in 1995. That compares with 1994's total of 47,822.

The bank made a total of 34,051 home loans to minorities nationwide during year, representing 16.8 percent of all home loans the bank made in 1995. It made 41,242 loans to low-income borrowers (those earning less than 80 percent of the median income of the area were they live), which represents 20.3 percent of all home loans BankAmerica made during 1995.

BankAmerica increased the total number of home loans it made by 19.4 percent during the period, with loans made to low income borrowers increasing 45.5 percent. Loans made to minority low-income borrowers increased 25 percent.

Nationwide last year, home loans made by BankAmerica to African Americans increased 56 percent, loans to Latinos increased 7.4 percent, and loans to Asians increased less than 1 percent.

"Our 1995 HMDA data confirms that, even in an extremely competitive market, we are successfully serving the needs of minority and low-income borrowers through our various loan programs," said Executive Vice President Don Mullane, head of the bank's Corporate Community Development unit. "We were one of the first banks to make such a commitment to this market, and we have remained true to that commitment."

While nationwide the number of loans the bank made to low-income and minority customers increased, the total number of loans the bank made in its largest market, California, decreased 28.4 percent, from 69,416 to 49,724. However, the number of minority borrowers decreased at a much lower rate -- 15.5 percent, from 15,797 in 1994 to 13,349 in 1995.

"The fact that minority loans decreased at a much lower rate than the overall market in California reflects our strong outreach in the minority community," Mullane said.

Loan applications from minority customers nationwide were declined by the bank at a higher rate than applications to white customers. The 1995 decline ratio -- the rate at which minority loan applications were declined divided by the rate of white loan declinations -- was 1.24, down from 1994's rate of 1.29. The decline ratio for African Americans was 1.41, down from 1994's rate of 1.51. The decline rate for Latinos was 1.22, down from 1994's rate of 1.27.

The decline ratio in California increased for all minority groups to 1.78 from 1.70, however. For African Americans the decline rate in the state was 2.1, up from 1.87 in 1994. For Latinos the decline rate was 1.92, up from 1.82 in 1994.

"With loan volume in the state down overall and competition increasing, you would expect to see some drop off, but we are looking for ways to counter this," Mullane said.

Under the Home Mortgage Disclosure Act, home loan providers may collect information on the race, ethnicity and gender of loan applicants to help determine how effectively they are meeting the needs of the community. HMDA data includes home purchase loans, refinancings, and products such as home equity and home improvement loans.

BankAmerica serves low- and moderate-income borrowers primarily through its Neighborhood Advantage loan program. The bank complements the program with special homebuyer seminars that educate potential borrowers about the application process.

Additionally, the bank is one of the nation's largest manufactured housing lenders. Manufactured housing is increasingly seen as an affordable way to become a home owner and BofA greatly expanded its manufactured housing loan operations in 1995. And the bank provided manufactured home purchasers with loans which required only a 5 percent down payment. -0-

Affiliate  Loan   Loan  Percent Loans  Loans  Percent Low    Loan   Per-
           total  total change  to     to     change  income income cent
           1994   1995          minor- minor-         loans  loans  change
                                ities  ities          1994   1995
                                1994   1995

BofA
Alaska     318    868   172.9   53     116    118.8   77     145    88.3
BofA
Arizona    9,621  6,665 -8.7    1,629  1,116  -9.0    2,154  1,337  -7.5
BofA Idaho 1,544  680   -55.9   83     46     -44.6   301    132    -55.8
BofA New
Mexico     2,347  1,877 -16.7   742    575    -18.6   340    250    -17.0
BofA
Nevada     3,498  3,446 -11.5   459    641    28.3    448    596    24.8
BofA
Oregon     6,765  5,429 -19.7   549    514    -6.3    1,408  972    -30.9
Seafirst  13,695 10,365 -24.3   1,414  1,113  -21.2   2,890  2,713  -6.1
BofA Texas 4,263  3,048 -4.3    1,280  1,153  -.5     1,242  1,032  -5.8

CONTACT: BankAmerica

Bob Wynne, 415/953-3836