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NATIONSBANK RELEASES FEDERAL HMDA INFORMATION CONCERNING 1991 RESIDENTIAL MORTGAGE MINORITY LENDING PERFORMANCE

 NATIONSBANK RELEASES FEDERAL HMDA INFORMATION CONCERNING
 1991 RESIDENTIAL MORTGAGE MINORITY LENDING PERFORMANCE
 CHARLOTTE, N.C., Sept. 22 /PRNewswire/ -- NationsBank (NYSE: NB) has released federal Home Mortgage Disclosure Act (HMDA) information that shows considerable improvement in its 1991 performance for residential mortgage lending to low- and moderate-income and minority customers.
 NationsBank made over 2,000 more mortgage loans to minority borrowers in 1991 than it did during 1990, a 43 percent increase. The value of these 7,212 loans -- nearly $412 million -- was about $150 million higher than in 1990.
 For African-Americans and Hispanics, NationsBank total home mortgage loans and the dollar value of these loans increased for 1991, compared to 1990. The same was true for low-and moderate-income customers throughout the NationsBank system.
 Home loan applications with NationsBank from minorities jumped nearly a third higher than in 1990, to 11,584. The dollar value of these was more than $600 million, a 50 percent hike from 1990. Applications and dollar values of these applications were up for African-Americans, Hispanics and for all low- and moderate-income customers for 1991, compared to 1990.
 "When you exclude refinancings, the growth rate of home loan applications from minorities exceeds the growth rate for these applications generally in our market," said Catherine P. Bessant, principal community investment executive for NationsBank.
 "We are encouraged by this solid indication that our NationsBank initiatives are working to bring us more potential customers from these traditionally underserved groups," Bessant added.
 "Obviously, the approval rates show that our product development and innovative underwriting approaches are generating results. Given the importance of making progress, I am pleased that we are increasingly able to work successfully with many more of these applicants."
 Home mortgage denial rates for 1991 remained fairly constant. "This is consistent with our belief that reducing decline rates is a long-term endeavor. It is frustrating that our aggressive effort to generate more applicants also generates more rejections along with added approvals, but the success of our effort is measured by the increased number of approvals," Bessant said.
 There are many reasons to believe the NationsBank HMDA numbers will continue to improve for 1992, Bessant said.
 NationsBank has pledged to inject at least $10 billion in loan capital into low-income and minority communities during the next 10 years, beginning in January 1992. Mortgage lending is only a part of this goal, but it is an important part, Bessant said.
 "There are three elements in the delivery of this program -- innovative product development, targeted marketing and borrower education and counseling," she said. "We've developed products and services we feel are making a difference in our communities. These products include home mortgage, home improvement, small-business lending and other consumer-oriented programs with one central theme -- flexibility."
 NationsBank is marketing home mortgage and home improvement products introduced during the last two years that are proving to be more appropriate for low-income and minority borrowers. These products feature alternative qualification standards, down payment and closing cost assistance, subsidized second mortgages and reduced underwriting fees.
 In Texas, where these products were available throughout the year, NationsBank made more than 2,055 home loans to minority borrowers in 1991, worth more than $77 million. The loan volume increased by nearly 130 percent and the dollar value jumped by 108 percent compared to 1990 figures. Increases in loan volume and dollar value were up sharply for both African-Americans and Hispanics, as were total applications from each group.
 The bank will spend more than $2 million in 1992 on advertising targeted to low- and moderate-income groups and minorities to help publicize its community investment products.
 Several other bank-wide initiatives have been implemented to continue these favorable trends.
 "As part of our overall program to educate our low-income and minority customers, we have formed partnerships with community groups throughout our service area. One example is our unprecedented partnership with the NAACP. We have pledged more than $1 million to open five Community Development Resource Centers across the South," Bessant said.
 These resource centers provide credit counseling seminars and classes. Centers in Charlotte, Atlanta and Columbia already are operating, with those in Richmond and Austin scheduled to open this fall.
 "This summer, we completed a corporatewide training project to educate our lenders and banking center associates about our entire community investment program and to sensitize them to the markets we are trying to serve better," Bessant said.
 Additionally, NationsBank has initiated a "one-up policy" for low- or moderate-income mortgage loan applicants. To decline a mortgage loan of this type, a loan officer must submit the documentation to his or her supervisor for concurrence.
 Further, the NationsBank Community Investment Program has formed a unit of seven employees devoted to developing innovative programs and to initiating education and counseling vehicles.
 It is important to note that the HMDA numbers represent only home mortgage loans, which make up roughly 25 percent of the total NationsBank Community Investment Program.
 "We are on track to lend more than $1 billion during 1992 in our underserved communities. This will put us on our way to meeting our goal of lending at least $10 billion in these communities during the next 10 years," Bessant said.
 NationsBank will issue its initial annual report on progress toward this goal during the first quarter of 1993. This report will be for NationsBank performance by individual counties and will include loans in all federal Community Reinvestment Act (CRA) categories.
 The NationsBank HMDA data, compiled by the Federal Financial Institutions Examination Council, is for all the 150 metropolitan statistical areas (MSAs) in the nine states and the District of Columbia where NationsBank operates.
 -0- 9/22/92
 /CONTACT: Ellison Clary, 704-386-8633 or (home) 704-365-1243, or Ginny Mackin, 704-386-5501 or (home) 704-875-1228, both of Corporate Communications NationsBank Corporation/
 (NB) CO: NationsBank Corporation ST: North Carolina IN: FIN SU:


SB -- CH004 -- 2050 09/22/92 09:50 EDT
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